Veteran hedge fund Anthony Scaramucci halts cashbacks exposed for crypto exchange FTX and Bitcoin

Anthony Scaramucci, founder of SkyBridge Capital, is addressing concerns about the company’s temporary halt to withdrawals on a cryptocurrency ETF.

In a new interview with CNBC’s Squawk Box, the investment veteran explains why Legion Strategies fund customer redemptions have been suspended as fears of a potential liquidation are allayed.

“The board made the decision to temporarily suspend until we can raise capital within the fund and ensure that when people exit they exit in an orderly manner and we keep fund portfolio composition more or less synchronized, so it doesn’t hurt investors if they want to stay.

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The fund is down 30% since the start of the year. This represents a 5% increase this month. The fund is not tied up in debt, so there is absolutely no fear of liquidation whatsoever.

Scaramucci continues to say that about a fifth of the fund invests in crypto-related products such as Bitcoin (BTC) and the FTX exchange, noting that once market conditions improve, the fund will resume normal activities.

About 18% of the fund is in what we call cryptocurrency exposure. Some of that is in things like bitcoin. Also private investments in things like Sam Bankman-Fried’s FTX.

Undoing all of this, we’ve taken the decision along with the independent board of directors, and as things begin to improve, we will reverse that suspension.

The hedge fund billionaire revealed himself by noting that investors often panic when they see the value of their portfolios drop. He adds that the Legion Strategies fund has been in operation for nearly three decades.

“Everyone is a long-term investor until they incur short-term losses. What eventually happens is that they start changing their investment idea when they start seeing negative short-term performance.

Some investors are conflicted, but frankly, there are a lot of investors…this fund has been around since 1994. There are a lot of investors who have made long-term capital gains.

In mid-June, Scaramucci reaffirmed her commitment to long-term investments in crypto despite the asset class’s decline of more than 70% since late 2021.

He suggested that Bitcoin could rise above $100,000 in the next two years, and then said of the overall crypto space,

“I can’t predict the future, but what I can see is that there is a huge amount of strong development and adoption.

Lots of pluses over the basics. Just awesome price action right now.

At the time of writing, Bitcoin is generating positive momentum, rising another 3.8% on the day and trading at $23,319.

BTC has rebounded 22% from the weekly low of $19,113 last Wednesday.

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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making high-risk investments in bitcoin, cryptocurrency, or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

Main image: Shutterstock / Amanda Carden

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