Anthony Scaramucci Says Holding Bitcoin Is As Safe As Owning Bonds And Gold

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Anthony Scaramucci, director of SkyBridge Capital and former White House communications director, believes that Bitcoin’s (BTC) value proposition has grown significantly now that governments have addressed many of the risks associated with the digital asset.

In an opinion piece published on CNN, Scaramucci and his SkyBridge executive colleague Brett Messing argue that Bitcoin has become a viable option for long-term investors seeking to hedge against inflation. The authors also claim that holding Bitcoin is much less risky today than it was a few years ago, when regulations and infrastructure were still underdeveloped.

Bitcoin’s growth has “caused government and institutions to step in and deal with many risks associated with digital currency,” the authors wrote, referring to the Office of the Comptroller of the Currency’s decision to allow banks to provide cryptocurrency services.

They continued:

“[…] increased regulation, improved infrastructure, and access to financial institutions – like Fidelity – that hold investors’ money have made bitcoin investments as safe as owning bonds and commodities like gold, which are also used to balance portfolios.

SkyBridge Capital caused a stir last month when it filed an application with the US Securities and Exchange Commission to launch a Bitcoin hedge fund. The SkyBridge Bitcoin Fund LP was launched a few weeks later with Fidelity acting as custodian and Ernst & Young taking care of the audit.

SkyBridge is believed to have invested in Bitcoin in November and December, allowing it to build up a significant position in digital assets before its parabolic peak. At the time of the fund’s launch on January 4, SkyBridge claimed its exposure to BTC was worth around $ 310 million.

Institutional capital was a major catalyst for Bitcoin’s 300% rally in 2020, peaking with a new all-time high of nearly $ 42,000 on January 8. So-called smart silver investors are starting to view Bitcoin as a form of digital gold – one with potentially much higher than precious metals.