SkyBridge Capital Suspends Crypto Fund Redemptions: Report
2022.07.19 22:58
SkyBridge Capital Suspends Crypto Fund Redemptions: Report
- Scaramucci’s SkyBridge suspends crypto fund redemptions, Bloomberg reports.
- SkyBridge’s Legion Strategies fund ceased accepting redemptions since 20% of the portfolio is now private firms.
- SkyBridge is just one of the many companies that suspended crypto services amid the current bear market.
According to a report from Bloomberg, investment firm Skybridge Capital, led by Anthony Scaramucci, halted cash withdrawals in one of its funds after severe drops in the value of equities and crypto.
According to one of the people acquainted with the situation, the Legion Strategies fund stopped accepting redemptions because around 20% of the portfolio is comprised of private firms that are more difficult to sell. The fund is one of Skybridge’s more modest products, and it delegates the majority of its around 230 million dollars in assets to the management of other hedge funds.
Bloomberg added that the fund is one of the more modest products made by Skybridge, which licenses out the majority of its around 230 million dollars in assets to other managers of hedge funds. It has been reported by Bloomberg FTX that one of the fund’s private investments is in the cryptocurrency exchange that was co-founded by the billionaire Sam Bankman-Fried.
According to a regulatory filing, the Legion Strategies fund was able to get exposure to digital assets by investing in other funds managed by Skybridge. These other funds included entities that were focused on Bitcoin, Ethereum, and Algorand. Around a quarter of Legion’s net assets have been allocated to funds like this.
As a result of the sharp decrease in the price of most digital assets, the firm, like many others engaged in cryptocurrency, has temporarily ceased its services. Companies such as Voyager Digital, Celsius Network, Babel Finance, and Three Arrows Capital are just a few examples.
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