Skybridge halts redemptions in fund with exposure to FTX, crypto: Bloomberg

Quick Take

  • Anthony Scaramucci’s investment firm Skybridge Capital has halted redemptions from a fund with exposure to companies such as FTX and cryptocurrency investment vehicles. 
  • This comes as troubles in the market have seen the price of bitcoin drop to below $20,000 this month from a November high of more than $60,000. 

Skybridge Capital, Anthony Scaramucci's investment firm, has halted withdrawals from a fund amid declines in the value of stocks and cryptocurrencies, according to a report by Bloomberg. 

Redemptions from the fund — named the Legion Strategies fund — are normally made through a tender offer by Skybridge, Bloomberg said. Cryptocurrency exchange FTX is one of the private companies in which the fund has invested. It also has exposure to cryptocurrencies through funds managed by the investment firm as of February 28, including bitcoin, ethereum and algorand.  

According to people familiar with the matter cited by Bloomberg, the Legion Strategies Fund suspended redemptions because illiquid private companies make up 20% of its portfolio. 

This heavy exposure to crypto has likely hurt the performance of this fund. Recent market turbulence has seen bitcoin drop below $20,000 from a high of more than $60,000 in November. 

The Block contacted Skybridge Capital for comment but did not hear back by the time of publication. 

Previously, the investment firm has made big pushes into crypto. It submitted a proposal to the Securities and Exchange Commission to seek approval for a spot bitcoin exchange traded fund in March 2021 — although this was ultimately rejected.

In an interview with The Block in May this year, Scaramucci said that the firm began investing in bitcoin at the end of 2020. The Block reported at this time that it had invested $182 million in the cryptocurrency, according to an investor deck. 

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