Anthony Scaramucci, head of SkyBridge Capital and former White House communications director, believes the value proposition of Bitcoin (BTC) has strengthened significantly now that governments have addressed many of the risks associated with the digital asset.
In an opinion piece published on CNN, Scaramucci and SkyBridge CEO Brett Messing argue that Bitcoin has become a viable option for long-term investors seeking shelter from inflation. The authors also claim that owning Bitcoin today is far less risky 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 address many of the risks associated with the digital currency’, the authors wrote, referring to the decision of the Office of the Currency 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 such as gold, which are also used to balance portfolios. ”
SkyBridge Capital made a big splash last month when it filed an application with the U.S. Securities and Exchange Commission to launch a Bitcoin hedge fund. The SkyBridge Bitcoin Fund LP was launched a few weeks later, with Fidelity as guardian and Ernst & Young handling the audit.
SkyBridge reportedly invested in Bitcoin during November and December, making it possible to accumulate a large position in the digital asset before its parabolic rise. When the fund was launched on January 4, SkyBridge claims the BTC exposure is worth about $ 310 million.
Institutional capital was a major catalyst behind Bitcoin’s 300% rise in 2020, culminating in a new high of close to $ 42,000 on January 8, so-called smart money investors are beginning to view Bitcoin as a form of digital gold – one with potentially many higher upside down than precious metals.