Anthony Scaramucci, head of SkyBridge Capital and former White House communications director, believes that Bitcoin’s (BTC) value proposition has improved significantly after governments addressed many of the risks associated with the digital asset.
In an opinion piece published on CNN, SkyBridge CEOs Scaramucci and Brett Messing argue that Bitcoin has become a viable option for long-term investors seeking refuge from inflation. The authors also claim that holding Bitcoin is far less risky today than it was a few years ago, when regulations and infrastructure were still underdeveloped.
Bitcoin’s growth has “led government and institutions to step in and address many of the risks associated with digital currency,” the authors wrote, referring to the decision by the Office of the Currency Verifier to authorize banks to provide cryptocurrency services.
“[…] Improved regulations, infrastructure, and access to financial institutions – like 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 splash last month when it filed an application with the Securities and Exchange Commission to set up a Bitcoin hedge fund. The SkyBridge Bitcoin Fund LP was launched a few weeks later, with Fidelity acting as custodian and Ernst & Young taking over the audit.
SkyBridge reportedly invested in Bitcoin in November and December to get a large position in the digital asset before a parabolic surge. At the time the fund was launched on Jan. 4, SkyBridge said its BTC exposure was valued at approximately $ 310 million.
Institutional capital was a major catalyst in Bitcoin’s 300% rally in 2020, culminating in a new all-time high near $ 42,000 on Jan. 8. So-called smart money investors are starting to view Bitcoin as a form of digital gold – one with potentially much higher than precious metals.