2020 has been the year of institutions, and Sky Bridge Capital – a hedge fund driven by Anthony Scaramucci – has decided to join the ranks. The company recently invested more than $25 million into the world’s largest and most popular digital currency by market cap after filing the appropriate paperwork with the Securities and Exchange Commission (SEC) early last week to form what’s now known as the Sky Bridge Bitcoin Fund L.P.
Scaramucci Sees Bitcoin as Completely Necessary
The company has already begun trading but will be open to outside investors beginning in early January. A minimum investment of roughly $50,000 will be needed to take part in the company’s operations.
Sky Bridge is following in the footsteps of several other institutional firms that have taken part in the newfound crypto revolution that has occurred this year. The first major company to really settle the bitcoin debate was MicroStrategy, which first began investing in BTC in August. From there, two additional major bitcoin purchases occurred, and then the company decided it was going to raise another $400 million so it could… you guessed it… buy more bitcoin.
But MicroStrategy wasn’t alone in its newfound love of crypto. Other firms, such as Square, MassMutual and Stone Ridge also saw bitcoin as a necessary item for the diversification of one’s portfolio. As a result, bitcoin has reached a new all-time high this year thanks to its latest institutional support and the bull run it’s incurring now is far different from the one three years ago, which was largely retail based.
Scaramucci is telling his followers that a bitcoin correction isn’t likely to occur for some time. He says that the asset is presently in its “early innings,” meaning that the price is likely to soar even higher, and that traders would be smart to get invested now despite the unusually high price it’s seeing.
We could be at the precursor of an avalanche of institutional investors heading in.
In addition, he believes that several more institutional investors are likely to get involved in bitcoin and crypto in early 2021, and that the craze is nowhere near over. He further states that he believes bitcoin will be a “very strong asset class” over the next ten years thanks, in part, to the overprinting of fiat currencies and harsh economic conditions such as inflation.
Just the Beginning for the Asset
Previously, the bitcoin price had been going through a period of hardship, falling about six percent from its recent spike beyond the $24,000 mark. It has since jumped back up about six percent and risen to about $23,500 at the time of writing.
Scaramucci says that while 2020 may have been a good year for bitcoin, several institutions were likely still wary, and will potentially send the asset soaring within the first half of next year.