Episode 47 of Season 4 of The Scoop was recorded remotely with The Block’s Frank Chaparro and Anthony Scaramucci, Founder of SkyBridge Capital and Chair of SALT.
As Anthony Scaramucci explained during his last appearance on The Scoop, his firm SkyBridge Capital began investing in bitcoin near the end of 2020.
Just under two years later, Scaramucci is positioned near the center of the burgeoning crypto industry, largely due to his role as Chair of finance conference business SALT, which partnered with FTX to host the first annual Crypto Bahamas conference in April of this year.
In this episode of The Scoop, Scaramucci tells the story of how he first met FTX’s Sam Bankman-Fried, and explains why upcoming regulatory clarity could signify “a floodgate opening” for bitcoin.
Out of the multiple structural tailwinds Scaramucci covers during the interview, he believes his prediction that a “cash bitcoin ETF will happen sometime this year” would likely have the biggest impact on the market, if it turns out to be true.
As Scaramucci hinted at during the show, “Buddies of mine have very large institutions, that unfortunately for right now have to remain nameless due to confidentiality, that are gearing up and ready to pounce on the Bitcoin cash ETF.”
According to a Nasdaq survey conducted in April, 72% of financial advisors polled indicated they would be more likely to invest client assets into crypto if there was spot ETF product available. Although the SEC has either rejected or delayed bitcoin spot ETF applications for years, Scaramucci believes that could all change soon, “given the saturation and the maturity of the market.”
In addition to a potential bitcoin spot ETF approval, Scaramucci also points to Fidelity’s recent announcement that it will allow clients to gain bitcoin exposure through their 401k accounts as another structural tailwind for bitcoin in the long run.
As Scaramucci explains during the show, inflows from the $2.7 trillion in 401k assets controlled by Fidelity could have a profound and steady impact on the crypto market:
“Fidelity is about to do for bitcoin what it did for the mutual fund and the U.S. equity markets when the 401k programs came into existence in the 1980s. The under-ownership of stocks born from the Great Depression still lived in the 1980s, and Fidelity pushed that into people's accounts, successfully for them, and successfully for Fidelity. They're about to do that to Bitcoin.”
During this episode, Chaparro and Scaramucci also discuss:
- The obsolescence of the American financial system
- The “anti-fragility” of robust decentralized systems
- Redefining the 60/40 portfolio allocation to include a digital asset strategy
This episode is brought to you by our sponsors Fireblocks, Coinbase Prime & Cross River
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Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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