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Skybridge Capital halts crypto fund withdrawals

Skybridge Capital
TL;DR Breakdown
  • Skybridge Capital halts withdrawals from its crypto fund
  • The firm plans to raise enough capital from the fund
  • The crypto fund is down by 30% in its YTD

Skybridge Capital has suspended withdrawals from one of the company’s funds. According to the statement, the fund in question, Legion Strategies, provides traders with crypto exposure. The news was confirmed by the firm’s CEO, Anthony Scaramucci, who intended to clear the air. This was because rumors went around some days ago that the firm was mulling the idea of suspending the fund.

Skybridge Capital plans to raise enough capital from the fund

According to the statement made available by Scaramucci on behalf of the company, he said that the decision was an agreement by the board. He also noted that the suspension would continue until the company could raise enough capital in the fund. He added that the fund has no lever, meaning traders should not be scared of liquidation or any other tragic incident. Asides from the company’s board making the decision, Scaramucci also mentioned that they consulted an external party. Finally, he added that 18% of the fund could be regarded as the quota representing crypto.

The fund is down by 30% in its YTD

In his statement, Scaramucci mentioned that some of the cryptos that Skybridge Capital has exposed users to include Bitcoin and related assets. Other firms in its lists as partners include crypto exchange Kraken among other firms in the crypto sector. Scaramucci mentioned it has been down a while, posting a bearish return of 30% in its YTD value. However, he quickly added that it is presently making strides for a jump with its 5% bullish performance this month. Details show that the said fund is offshore with a balance of more than $200 million.

In a detailed analysis by Skybridge Capital and its executive, the fund is one with a minor balance owned by the platform. Also, the boss mentioned that this is the first time halting the fund since its creation. Scaramucci also mentioned that investors already had a heads up based on the signed agreement. Skybridge Capital has been involved in floating an ETF, which has been met by a stiff rejection by the SEC. Although Skybridge Capital entered the crypto sector in 2020, the firm has vowed to evolve its services to help traders manage their crypto assets.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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