An American hedge fund, SkyBridge Capital, with assets of over $9 billion, has filed a formal application with the U.S securities regulator as regards starting a new Bitcoin (BTC) fund.
- The Form D for an exempt offering was seen on the Securities and Exchange Commission’s website yesterday. The proposal detailed “SkyBridge Bitcoin Fund L.P.” as the issuer and “SkyBridge Bitcoin Fund GP LLC” as a related person.
- According to the filing, the proposed fund is classified as a “hedge fund.” SkyBridge however didn’t reveal the size of targeted investment, but the minimum from any individual investor will be $50,000.
What you should know about SkyBridge
SkyBridge Capital was founded in 2005 by Anthony Scaramucci. The company acquired the hedge fund solutions group from Citigroup Alternative Investments (CAI). It eventually grew to have over $9 billion in assets under management.
The application was filed about a month and a half after the hedge fund initially notified the U.S securities regulator of its intent to launch a Bitcoin-related hedge fund.
On November 13, SkyBridge submitted a prospectus to the SEC, which states:
“Investment Funds may hold long and short positions in digital assets […] The Company and Investment Funds may also invest in securities of companies related, in whole or in part, to digital assets or digital asset technologies (including digital asset miners, payment technologies, digital security, or crypto trading exchanges), or that otherwise have direct or indirect exposure to emerging technologies.”
The report also included individuals qualified to take part in the crypto investment fund:
An individual who has an individual net worth or joint net worth with his or her spouse, in excess of $1,000,000.
“Net worth” for these purposes means the value of total assets at fair market value (not including the value of an individual’s primary residence or debt secured by the primary residence so long as:
(i) the estimated fair market value of the residence is greater than the amount of debt secured by it and
(ii) the amount of debt secured by the residence has not increased in the 60 days preceding the sale of securities to the investor (other than in connection with the acquisition of the primary residence)), less total liabilities;
An individual who had an individual income exceeding $200,000 in each of the two most recently completed calendar years (or a joint income with Subscriber’s spouse in excess of $300,000 in each of those years) and who has a reasonable expectation of reaching the same income level in the current calendar year.
At the time of writing this report, Bitcoin traded at $22,841.01 with a daily trading volume of $51,322,992,221. Bitcoin is down 3.53% for the day.
Bitcoin ETF in North America has reached $1 billion in assets
The first North American Bitcoin ETF has already reached $1 billion (C$1.25 billion) in assets less than two months after its launch.
According to a statement from its issuer, the first North American Bitcoin ETF has already reached $1 billion (C$1.25 billion) in assets less than two months after its launch. What exchange-traded funds did to the conventional investing market for decades could happen to cryptocurrency players in a fraction of the time.
Investors are clamoring for crypto exposure, particularly in an exchange-traded fund wrapper, and the product from Toronto-based Purpose Investments, ticker BTCC, has seen a lot of interest. Although there are many crypto funds in Europe that work similarly to ETFs, this is the first ETF anywhere.
More than $165 million worth of shares were traded on the fund’s first trading day in February, a big start for a fund in the much smaller Canadian ETF market.
Its rapid cash accumulation reflects the high demand for Bitcoin products in the United States, as issuers compete for approval of the first Bitcoin ETF in the nation. Despite regulator resistance to accept the tactics, at least eight companies, including VanEck Associates Corp. and WisdomTree Investments, now have live applications with the Securities and Exchange Commission.
On Tuesday, Bitcoin surged to an all-time high of about $63,246 ahead of Coinbase Global Inc.’s upcoming IPO later this week.
There is an increasing expectation that a bitcoin ETF will be available in the United States in the not-too-distant future. Gary Gensler, the nominated chairman of the Securities and Exchange Commission, has taught cryptocurrency classes. The bitcoin market has exploded in popularity in recent months, attracting the attention of major financial institutions. Bitcoin ETFs are once again being sought by VanEck, Fidelity, and others.
One advantage of ETFs is that shares can be readily created and redeemed to arbitrage away any discount or premium, which could greatly broaden their appeal. ETFs are also cheaper, which will put pressure on fees across the bitcoin ecosystem. Hence market sentiment may push the ETF higher.
Bitcoin is on fire, breaks above all-time high
The flagship crypto traded at $62,645.26 with a daily trading volume of about $60 billion.
Bitcoin prices ascended to a record high on Tuesday, hitting another milestone at above $62,000, a move that many reaffirm to be a bullish trend in the cryptoverse and one that can make other digital assets surge.
At the time of writing this report, the flagship crypto traded at $62,645.26 with a daily trading volume of about $60 billion. Bitcoin is up 2.99% for the day. The world’s most popular crypto now has a market value of about $1.17 trillion.
Adding credence to the strong bullish run in play is data retrieved from Glassnode pointing to the fact that holders of the flagship crypto are selling less, as Bitcoin deposits on exchanges hit a 30-day low.
BTC Number of Exchange Deposits (7d MA) just reached a 1-month low of 2,837.702.
— glassnode alerts (@glassnodealerts) April 13, 2021
More details later…
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