Skybridge Capital will launch a private Ethereum fund. In parallel, the company has filed an Ether ETF with the SEC. The fund has already filed a pending bitcoin ETF with the SEC.
Speaking to "The Scoop Podcast", ex-White House communications director Anthony Scaramucci discussed his bitcoin journey and his fund's crypto game plan. The fund was already in the headlines late last year - when it was revealed that it had invested $182 million in Bitcoin.
This makes it one of the first hedge funds to properly dive into the crypto market. A big bet when the coin was still trading for less than $30,000 a piece.
The investment firm partnered with several crypto firms to do so. Skybridge Capital assumed that institutional money would flow into the market - and didn't want to get in too late.
Skybridge Capital goes "all in"
Scaramucci stresses in the podcast that the fund is fully committed to cryptocurrencies. And the next step is to apply for an ETF. It's a path many firms have taken - but so far without success.
Because the SEC has received numerous applications for Bitcoin and Ethereum ETFs, but has not yet approved a single one of them.
With the bull market, the number of Bitcoin and Ether ETFs filed with the SEC has increased significantly. Skybridge Capital now joins a long line of investment funds waiting for a corresponding decision from the SEC.
Firms are waiting with bated breath as the SEC is taking its sweet time deciding whether or not to approve the ETFs. Countries like Canada have approved Bitcoin and Ether ETFs and have seen a lot of success with the ETFs. The US Securities and Exchange Commission (SEC), on the other hand, has yet to approve a single one.
Even if approvals are lacking: It says a lot about the current state of the market when so many firms are submitting applications for crypto-related ETFs.
More institutional money in the market
Scaramucci also took the time to talk about the acceptance of digital assets in the financial world. The CEO believes, "Even though not everyone may get in, enough people will still come into the market to drive the price of the assets up.
"I just think it's one of those weird assets where more and more people get pulled into the pool the higher the prices go."
Anthony Scaramucci sees Morgan Stanley's entry into his Bitcoin fund as a sign that institutions are ready to enter the crypto market. He is therefore very optimistic that more institutional money will flow into the market.
Skybridge Capital is not the only firm with an interest in the crypto market. MicroStrategy also increased its bitcoin portfolio last year. A $500 million purchase recently took its portfolio to over 100,000 bitcoins.
Goldman Sachs has also taken the plunge and started offering Bitcoin and Ethereum options and futures to clients (go here for our latest Ethereum forecast). Goldman has also unsuccessfully filed a bitcoin ETF with the SEC.
Skybridge Capital currently has a $500 million bitcoin fund. And the firm plans to keep investing - growing the fund and other digital asset funds.