Scaramucci explained on CNBC, “Our board has chosen to temporarily suspend withdrawals until we can attract capital within the fund.” He clarified that the fund is not leveraged, ensuring there is no risk of liquidation. Approximately 18% of the fund is invested in cryptocurrencies. An independent board was also involved in making this decision.
Scaramucci mentioned that the fund has exposure to assets such as Bitcoin (BTC) and FTX stock. Additionally, Skybridge’s website lists investments in various crypto-related companies like Kraken, NYDIG, Helium, Lightning, and Genesis Digital Assets. The Legion Strategies fund has seen a 30% decline in performance year-to-date but reported a 5% increase in July.
Legion Strategies is an offshore fund domiciled in the Cayman Islands with around $250 million in assets, making it one of Skybridge’s smaller funds. This suspension marks the first time it has occurred since the fund’s inception in 1994. Skybridge, established in 2005, is the company behind the fund.
Scaramucci highlighted, “All investors have signed agreements that allow for this flexibility, so there should be no surprises given the current market conditions.”
Skybridge is one of the financial firms that have sought approval to launch a Bitcoin exchange-traded fund (ETF) but have been denied by the U.S. Securities and Exchange Commission (SEC).
In late 2020, Skybridge made its initial investments in Bitcoin and in April announced its intent to transition into a prominent cryptocurrency asset manager and advisor.
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