Skybridge Suspends Withdrawals From One Of Its Crypto-Exposed Funds

Skybridge Capital has halted withdrawals from its Legion Strategies fund, one of the firm’s crypto-focused funds. Founder Anthony Scaramucci confirmed the move in an interview with CNBC on July 19, after Bloomberg reported it the day before citing anonymous sources.

“Our board decided to temporarily suspend operations until we can raise capital within the fund,” Scaramucci told CNBC. “Because the fund is unlevered, there is no fear of liquidation, and approximately 18 percent of the fund is in what we would call crypto exposure.” Scaramucci stated that an independent board considered art in its decision.

Scaramucci cited Bitcoin (BTC) and the FTX stock as examples of the fund’s cryptocurrency exposure. Kraken, NYDIG, Helium, Lightning, and Genesis Digital Assets are among the other crypto-related companies listed as investments on the Skybridge website that are not specifically linked to Legion Strategies. Scaramucci stated that the Legion Strategies fund was down 30% year to date, but up 5% in July.

According to Scaramucci, Legion Strategies is an offshore fund based in the Cayman Islands with approximately $250 million in assets. It is one of the company’s smaller funds. This was the first suspension of the fund since its inception in 1994. Skybridge was established in 2005.

Scaramucci told CNBC:

“Everybody signed an investor agreement, this type of flexibility, so I don’t think there are any surprises here given what’s going on in the overall market.”

Skybridge is one of the financial services firms

Skybridge is one of the financial services firms that applied to list a Bitcoin exchange-traded fund but were denied by the US Securities and Exchange Commission (SEC).

Skybridge made its first Bitcoin investments in late 2020, and in April announced that it was repositioning itself to “eventually be a leading cryptocurrency asset manager and adviser.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

CoinCu News