This week, Anthony Scaramucci’s SkyBridge Capital introduced the launch of its funding thesis, presentation and full web site for its new Bitcoin Fund LP. Not like different funding corporations, it went a step additional in explaining why it’s actively selecting bitcoin over gold.
SkyBridge Capital’s major fund, with $9.3 billion in property underneath administration (AUM), has invested a now-roughly $300 million place in bitcoin. In December 2020, it introduced that it was elevating a brand new, separate bitcoin-only fund and had already transferred about $25 million price of bitcoin into it.
This week, it opened the fund to accredited traders with a minimal funding of no less than $50,000. This bitcoin LP gained’t commerce, however you solely pay a 0.75 p.c annual charge and no premium. The portfolio is priced by Bloomberg’s fastened fee (XBT). That is in distinction to GBTC (a grantor belief) which trades OTC, has a 2 p.c annual charge and features a premium to bitcoin’s value.
SkyBridge’s web site is an enormous library of knowledge. It has its providing memorandum, funding presentation and funding thesis. It additionally consists of:
- FAQ movies (MicroStrategy CEO Michael Saylor options and Scaramucci has cited him as a significant affect)
- Readings on Bitcoin (@Vijay’s “The Bullish Case For Bitcoin”)
Towards the underside of the web site, it additionally takes a dig at GBTC’s premium and provides to stroll by a “GBTC swap” to its fund. It understands the hurdles that many conventional traders face in investing into bitcoin and lean into them.
Extra gratifying than studying the humorous digs at GBTC, although, is studying the digs on gold. As a result of, as different massive institutional traders have lately purchased bitcoin, they’ve largely executed so whereas additionally nonetheless holding gold.
An instance is Ruffer’s ($27 billion AUM) current $775 million bitcoin buy by its multi-strategy fund, which was about 2.5 p.c of the portfolio. This was an enormous step, however nonetheless very small in comparison with its gold and inflation-linked bond holdings.
One other instance was when the pinnacle of worldwide equities at Jefferies lately minimize the gold publicity within the long-only pension funds in favor of bitcoin. However even after this, bitcoin stays a 5 p.c allocation vs. 65 p.c gold bullion and gold mining holdings.
With a bitcoin-only LP, there’s no getting across the query of “why bitcoin vs. gold?” SkyBridge must deal with it head on, and it does. Its funding thesis is 10 pages (not together with authorized disclaimers) and about one-third of them concentrate on why gold is inferior to bitcoin and the way bitcoin will likely be gold 2.0.
It rapidly establishes that there’s a want for a deflationary asset — rising debt, rising cash provide and low rates of interest.
It then rapidly asks: “Is gold to the rescue?”
The key factors it present for professional bitcoin vs. gold are:
- Mounted vs. restricted provide (the gold provide will increase by about 1.25 p.c provide per 12 months)
- The tech business will likely be major driver of marginal wealth creation — a digital asset matches this
- Extra wealth is being transferred to millenials — transferability and storage of bitcoin matches this demographic
Its thesis additionally features a abstract graphic:
The SkyBridge presentation expands on gold 2.0 even additional, past the funding white paper, explaining why bitcoin is superior and likewise utilizing gold for example of potential progress.
In its opening web page, it states that “Bitcoin is best at being gold than gold” and cites gold’s present market capitalization for example of the place bitcoin’s value might develop.
The presentation and thesis proceed by protecting Halvings, rising adoption and bitcoin as a portfolio diversifier. However essentially the most attention-grabbing side stays the truth that an institutional investor instantly addresses the query of “why bitcoin over gold?”.
All in all, the launch of the SkyBridge Bitcoin LP is one other sturdy step in Bitcoin’s adoption by traders. It notes the problematic premium with GBTC for traders and addresses head on why an institutional investor would select bitcoin over gold.
This can be a visitor submit by Ellie Frost. Opinions expressed are solely their very own and don’t essentially mirror these of BTC Inc or Bitcoin Journal.
The submit SkyBridge Capital Says That “Bitcoin Is Higher At Being Gold Than Gold” appeared first on Bitcoin Journal.