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  • J Markezic and M Bacina

USD$7B Fund Hasn’t Offloaded Crypto Amid Market Volatility

Updated: May 3

Anthony Scaramucci - who rose to fame as the short-lived Communications Director in the Trump Administration, and current founder and CEO of SkyBridge Capital - confirmed this week that the firm retains all of its positions within crypto despite the recent UST and Luna crash.

Despite the USD$800B correction, Scaramucci, as well as other crypto market players, have remained optimistic about the market outlook. Speaking to CNBC, Scaramucci drew upon the example of pre-GFC equities markets:

We can draw historical context back to March 2000 where we saw the Nasdaq go from something like 5,000 and change down to 2,300.
I think these assets are at distressed level prices. They are technically oversold, and so we haven’t sold one position, frankly.

In the same interview, Scaramucci drew upon the examples of Bitcoin and Ethereum to remind investors about long-term recovery:

What I would encourage people to think about is two core protocols, Bitcoin and Ethereum. Zoom out and take a look at what they have done over a five-year period of time and recognize that there was a flaw in the Terra LUNA mechanisms… Skybridge never owned any of those tokens. Many people spoke out against that and when that crumbled, you saw massive selling pressure, so I think this thing is technically oversold.

Pantera Capital's Paul Veradittakit echoed this sentiment in an interview with Bloomberg:

Compared to 2018, there are more institutional investors with exposure to crypto and most see this as a buying opportunity.

Brian Nick, the chief investment strategist at Nuveen, was also interviewed by Bloomberg recently commenting on the recent UST crash:

What gets punished when financial conditions are tightening? Anything with a high valuation and an uncertain or non-existent revenue stream... [a]nd crypto has inarguably high valuations and no revenue stream. That’s very much of a piece with what we’re seeing in growth stocks, tech. It’s correlated but obviously it’s more volatile because the market is less liquid.

Comments from market players such as these investment and analysis firms are ultimately reassuring for those who are reading articles declaring the death of crypto-assets. Bitcoin's market capitalisation is above USD$500 billion, and a key reason for the price reaction concerning Luna may have been that holder were only hearing negative things about Luna (as well as substantial selling pressure by the Luna Guard Foundation.

Most of these bad news stories will end up logged on the Bitcoin Obituaries page and be a source of learning in future.


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