Skybridge Capital Halts Redemptions on Crypto Fund

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  • Skybridge Capital has halted redemptions on one of its crypto-exposed funds
  • The investment firm has suffered in the crypto downturn and has shed many of its assets
  • Skybridge was founded by Anthony Scaramucci, a passionate Bitcoin supporter

Skybridge Capital, the investment firm started by Donald Trump’s one-time communications director Anthony Scaramucci, has had to halt redemptions of a fund due to the collapsing stock and crypto markets. Bloomberg reported overnight that Skybridge’s Legion Strategies fund has chosen to suspend redemptions because of its exposure to the two poorly performing sectors, and private companies, which are harder to get rid of, now make up about 20% of the portfolio.

$3.5 Billion Exposure Damaged by Crypto Downturn

Scaramucci told Bloomberg just three months ago that almost half of the $3.5 Skybridge had under management was linked to crypto assets including BTC, ALGO and ETH as well as publicly traded, crypto-related stocks, an investment in the exchange FTX among them.

This backed up his belief that the fund could triple its assets to $10 billion thanks to its crypto exposure.

Scaramucci Predicted $100,000 Bitcoin by 2023

Times seem, evidently, to have changed. Bloomberg cited “people familiar with the decision” as the source behind the news that Skybridge has sent a large majority of its $230 million worth of assets out to third party hedge fund managers.

It is not known how badly the Legion Strategies fund has performed, but given how the crypto market as a whole has fared in 2022, we can assume it is not well.

Scaramucci insisted in May 2021 that the Bitcoin bull run wasn’t over and that the price would hit $100,000 by the end of 2022. He has five and a half months left.