Anthony Scaramucci, head of SkyBridge Capital and former White House communications director, believes that the Bitcoin (BTC) value proposition has strengthened significantly now that governments have addressed many of the risks associated with the digital asset.
In an opinion article published on CNN, Scaramucci and his executive colleague at SkyBridge, Brett Messing, argue that Bitcoin has become a viable option for long-term investors seeking refuge from inflation. The authors also claim that maintaining Bitcoin is much less risky today than it was a few years ago, when regulations and infrastructure were still underdeveloped.
The growth of Bitcoin “has caused the government and institutions to intervene and address many of the risks associated with digital currency,” the authors wrote, referring to the decision of the Coin Controller to authorize banks to provide cryptocurrency services. .
They continued:
“[…] Increased regulations, improved infrastructure and access to financial institutions – such as Fidelity – that hold investors’ money have made bitcoin investments as safe as owning bonds and commodities like gold, which are also used to balance portfolios. ”
SkyBridge Capital made a big impact last month when it filed with the U.S. Securities and Exchange Commission to launch a Bitcoin hedge fund. The LP SkyBridge Bitcoin Fund was launched a few weeks later, with Fidelity acting as custodian and Ernst & Young handling the audit.
SkyBridge reportedly invested in Bitcoin during November and December, allowing it to accumulate a large position in the digital asset before its parabolic peak. At the time the fund was launched on January 4, SkyBridge said its exposure to BTC was worth approximately $ 310 million.
Institutional capital was a major catalyst behind Bitcoin’s 300% hike in 2020, culminating in a new high of almost $ 42,000 on January 8. So-called smart money investors are starting to see Bitcoin as a form of digital gold – one with much higher potential than precious metals.