• Sun. Aug 14th, 2022

Scaramucci’s firm suspends investor redemptions for fund with exposure to Bitcoin and Ethereum

ByHazel R. Lang

Jul 19, 2022

Legion Strategies, a hedge fund affiliated with Anthony Scaramucci’s Skybridge Capital, has halted investor redemptions, according to a Bloomberg report citing people familiar with the decision.

This decision would come after sharp declines in stocks and cryptocurrencies witnessed over the past few months, with a source telling Bloomberg that the decision to suspend redemptions was made because private company stocks, which have traditionally been harder to sell, now make up about 20% of the fund’s portfolio.

FTX, the crypto exchange run by Sam Bankman-Fried, is also among Legion Strategies’ private investments.

Through other funds managed by Skybridge, the Legion Strategies fund has also gained exposure to cryptocurrencies such as Bitcoin, Ethereumand Algorandaccording to a filing with the SEC.

Legion Strategies had approximately $230 million in assets under management (AUM), with nearly 25% of net assets held in crypto as of February 28. Currently, the fund only holds 10% digital assets, according to Bloomberg.

Decrypt separately contacted SkyBridge for comment and will update the story if we receive a response.

Gateway and crypto

Scaramucci, who had a brief stint in the White House as communications director in 2017, has become an outspoken crypto advocate.

Among its many crypto initiatives, Skybridge Capital was also pushing for a place Bitcoin ETFsonly to have his claim denied by the SEC in January of this year.

The New York-based company, which had approximately $3.5 billion in assets under management as of April, with almost half of that amount tied to digital assets, also intended to become “a manager and advisor to ‘top tier cryptocurrency assets’, with Scaramucci telling the time that ‘cryptocurrency markets represent huge growth’.

“It comes with volatility, sure, but I think over three to five years we like that trajectory,” Scaramucci said. Bloomberg ahead of the annual SkyBridge Alternatives (SALT) conference in April.

Fortunes, however, may have changed since then.

The crypto market has lost more than $1.2 trillion in value since the start of the year, according to CoinMarketCap, with major cryptocurrencies like Bitcoin and Ethereum dropping around 50% and 60% respectively over time .

Bitcoin was changing hands around $21,878 at press time, down 1.80% in the last 24 hours.

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