SkyBridge Capital founder Anthony Scaramucci is doubling down on his belief that the institutional embrace of Bitcoin (BTC) is in full swing and poised to accelerate significantly in the upcoming quarters.
Speaking on CNBC’s “Squawk Box”, the former White House Director of Communications highlighted recent developments, such as U.S. pension funds entering the crypto market, pointing to the State of Wisconsin Investment Board’s investments in BlackRock’s iShares Bitcoin Trust (IBIT) and Grayscale’s Bitcoin Trust (GBTC).
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According to recent U.S. Securities and Exchange (SEC) filings, the board allocated $170 million to these trusts, signaling a significant shift in institutional perception of Bitcoin’s role as a strategic asset.
“I think the institutional adoption is happening now,” Scaramucci said. “The State of Wisconsin announced. We expect other pension funds to announce.”
Scaramucci attributed this growing interest to regulatory approvals, which have eased concerns for large-scale institutional investors.
With regulatory hurdles cleared, institutions now feel more comfortable including Bitcoin in their long-term tactical asset allocation strategies. If you’re not long Bitcoin, you’re essentially short Bitcoin, especially considering BlackRock’s stance on incorporating it into their strategic plans.
Anthony Scaramucci, SkyBridge Capital founder
The momentum behind institutional adoption is evident from the disclosure of nearly 1,000 large investors holding U.S. Bitcoin spot ETFs.
A majority (52%) of the nation's largest hedge funds are betting on #Bitcoin
With the introduction of Bitcoin ETFs, institutions have run out of reasons to say no to sound money🚀 pic.twitter.com/FI3UfBssIP
— Sam Baker (@macromule) May 17, 2024
Scaramucci vs. Saylor
Scaramucci views Bitcoin primarily as a store of value, aligning himself with the “digital gold” narrative.
He also previously called it a “compounding machine for investors,” comparable to Berkshire Hathaway.
He dismissed the notion of Bitcoin primarily as a medium of exchange, a sentiment echoed by MicroStrategy’s Michael Saylor.
Looking ahead, the former Goldman Sachs banker remains optimistic about Bitcoin’s long-term growth potential. He believes that even conservative projections could lead to significant market capitalization, potentially rivaling that of gold.
According to him, Bitcoin’s bullish outlook stems from its early adoption phase, which presents strategic advantages for investors willing to navigate its risks and volatility.
“Sometimes, when you’re early, you get a lot of bumps and scrapes. But I think it pays to be early in Bitcoin, and I think we’re still early in Bitcoin,” he said.
Despite the positive momentum, Scaramucci — author of “From Wall Street to the White House and Back” — emphasized the importance of education and due diligence for investors venturing into the Bitcoin market. He stressed the need to understand the underlying principles driving Bitcoin’s value proposition beyond just reading its white paper.
Scaramucci’s confidence in Bitcoin’s future is underscored by SkyBridge’s early adoption of the cryptocurrency despite initial skepticism from some financial institutions. He pointed out that many of these institutions have since embraced Bitcoin and related investment products like ETFs.
As institutional adoption continues to gather steam, Bitcoin’s value proposition will become increasingly apparent to a broader audience of investors, Scaramucci said.