1/ “Bitcoin is better at being gold than gold” - SkyBridge Capital

@Scaramucci 's SkyBridge Capital released their investment thesis for their new Bitcoin Fund LP. They go a step further than other investors in why they are actively choosing bitcoin over gold

A thread 👇

2/ SkyBridge Capital’s main fund, with $9.3B AUM, had invested ~$182M in BTC. In Dec., they announced they were raising a new, separate Bitcoin only fund and already transferring ~$25M of BTC into it
3/ Today they opened to accredited investors w/ min invstmnt of at $50K. This Bitcoin LP won’t trade BUT you only pay 0.75% annual fee and no premium, the portfolio is priced by Bloomberg’s fixed rate (XBT). In contrast, GBTC trades OTC, a 2% yr fee, and a premium to BTC’s price
4/ Their website is a vast library of info. Not just their Offering Memo, pres. & investment thesis. It also includes:
- FAQ videos (Michael Saylor features and Scaramucci has cited him as a major influence)
- Readings on Bitcoin (@real_vijay The Bullish Case for Bitcoin)
5/ Towards the bottom of the page, they also take a dig at GBTC’s premium and offer to walk through a “GBTC swap” to their fund. They understand the hurdles that many traditional investors face in investing into BTC and lean into it

https://t.co/gQBrGYKy7m
6/ But more enjoyable than reading digs at GBTC, is reading the digs on Gold. Because, as other large institutional investors have recently bought Bitcoin, they have largely done so while also still holding gold
7/ An example - Ruffer’s $775M bitcoin ($27B AUM) buy through their multi strat fund (~2.5% of the portfolio) was a huge step...but still small compared to their gold and inflation linked bonds holdings…
8/ Another example - The head of global equities at Jefferies cut the gold exposure in the long-only pension funds in favor of Bitcoin...but BTC remains 5% allocation vs. 65% Gold bullion/mining
9/ With a Bitcoin only LP, there’s no getting around the question of “why BTC vs. gold?.” SkyBridge needs to tackle it head on, and they do. Their investment thesis is 10 pages (not including legal disclaimers) and ~1/3 are why gold is inferior to BTC and how BTC will be gold 2.0
10/ They quickly establish that there is a need for a deflationary asset - increasing debt, increasing money supply, low interest rates

They then quickly ask is “Gold to the rescue?”

No.
11/ The major points for pro BTC vs. gold?
- Fixed vs. limited supply (G increases ~1.25%/yr)
- Tech industry will be primary driver of marginal wealth creation(a digital asset fits)
- More wealth is being transferred to Millennials- transferability/storage of BTC fits this demo
12/ A summary graphic is also included
13/ The SkyBridge presentation expands on Gold 2.0 even further - why Bitcoin is superior and uses gold as an example of potential growth

As they say in the opening page, “Bitcoin is better at being gold than gold”
14/ The presentation and thesis continue with covering the halvings, growing adoption and bitcoin as a portfolio diversifier, but my favorite part remains an institutional investor directly addressing the question of why Bitcoin over gold?
15/ TL;DR: The launch of the SkyBridge Bitcoin LP is another strong step in Bitcoin’s adoption by investors

1) They address the problematic premium w/ GBTC for investors
2) They address head on why an institutional investor would choose Bitcoin over gold

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"I really want to break into Product Management"

make products.

"If only someone would tell me how I can get a startup to notice me."

Make Products.

"I guess it's impossible and I'll never break into the industry."

MAKE PRODUCTS.

Courtesy of @edbrisson's wonderful thread on breaking into comics –
https://t.co/TgNblNSCBj – here is why the same applies to Product Management, too.


There is no better way of learning the craft of product, or proving your potential to employers, than just doing it.

You do not need anybody's permission. We don't have diplomas, nor doctorates. We can barely agree on a single standard of what a Product Manager is supposed to do.

But – there is at least one blindingly obvious industry consensus – a Product Manager makes Products.

And they don't need to be kept at the exact right temperature, given endless resource, or carefully protected in order to do this.

They find their own way.
So the cryptocurrency industry has basically two products, one which is relatively benign and doesn't have product market fit, and one which is malignant and does. The industry has a weird superposition of understanding this fact and (strategically?) not understanding it.


The benign product is sovereign programmable money, which is historically a niche interest of folks with a relatively clustered set of beliefs about the state, the literary merit of Snow Crash, and the utility of gold to the modern economy.

This product has narrow appeal and, accordingly, is worth about as much as everything else on a 486 sitting in someone's basement is worth.

The other product is investment scams, which have approximately the best product market fit of anything produced by humans. In no age, in no country, in no city, at no level of sophistication do people consistently say "Actually I would prefer not to get money for nothing."

This product needs the exchanges like they need oxygen, because the value of it is directly tied to having payment rails to move real currency into the ecosystem and some jurisdictional and regulatory legerdemain to stay one step ahead of the banhammer.