Crypto News
2 years ago

Scaramucci’s SkyBridge Pauses Withdrawals for a Fund With FTX Exposure

Chayanika Deka Jul 19, 2022 14:02
The move comes amidst sharp declines in both crypto and stocks.

Anthony Scaramucci’s Skybridge Capital has halted investor redemptions for one of its hedge funds – Legion Strategies. The fund, with $230 million in assets under management (AUM), happens to be one of the smaller offerings of the investment firm.

  • Since the peak of the 2021 bull run, several crypto-assets, including Bitcoin and Ethereum, have plummeted by nearly 70%. In fact, crypto is currently in the midst of one of the worst market crashes in its a little over a decade old history. The broader stock market also crumbled.
  • The falling prices have gutted a myriad of once-established players, including lenders, stablecoin issuers, and retail and institutional investors alike.
  • Sources familiar with the matter told Bloomberg that SkyBridge’s decision comes because stocks in private companies are relatively harder to dispose of.
  • As per the latest figures, 20% of Legion Strategies’ holdings are in privately held entities.
  • The hedge fund also owns 10% of crypto in its portfolio, gaining exposure mainly via other funds managed by Skybridge Capital as per the filing with the US Securities and Exchange Commission (SEC). Besides, Legion Strategies’ private investments also include prominent crypto exchange – FTX.
  • During the bloodbath in the crypto market followed by the Terra implosion and several platforms going bankrupt, SkyBridge Capital founder Anthony Scaramucci revealed adding more Bitcoin and Ethereum to the firm’s portfolio.
  • Scaramucci’s Skybridge was among the first hedge funds to move into Bitcoin a few years back. Since then, he has accelerated the move into crypto via various blockchain partnerships, including the one with NAX’s trading platform.
Share This Article
Chayanika Deka

Chayanika has been working as financial journalist for five years. A graduate in Political Science and Journalism, her interest lies in regulatory implications with a focus on technological evolution in the crypto realm. Contact:Linkedin

Tags: FTX Exchange