SkyBridge Crypto Fund Losses: Scaramucci's Long Crypto Bet Continues to Sting
Anthony Scaramucci's SkyBridge Capital — one of Wall Street's most vocal crypto advocates — is once again making headlines, but not for the right reasons. According to Bloomberg, SkyBridge Capital's flagship fund posted losses for two consecutive quarters due to its cryptocurrency positions.
The Redemption Crisis That Won't Go Away
SkyBridge's problems with its crypto fund aren't new — they've been building for years. Over two-thirds of the shareholders of Scaramucci's $1.6 billion crypto fund had filed for redemption of their shares and were still waiting to get their money out, with private wealth clients at Morgan Stanley making up a large number of those requests.
The numbers are damning. In the five years ended March 31, the fund posted annualized returns of less than 1% — while over the same period, Bitcoin rallied 10X. Investors who wanted out largely couldn't get out either. While investors holding around 70% of the fund's shares requested their money back, the fund only repurchased about 7% of those shares.
The Strategy Pivot
Facing the heat, SkyBridge began quietly stepping back from crypto. SkyBridge Capital increased its macro trading allocation to 69% by September 2025, shifting away from digital assets which had made up nearly 65% of the fund just months earlier in March 2025.
Scaramucci himself admitted the environment had changed. Speaking at the World Economic Forum in Davos, he said "because of the volatility, the macro traders have done better," while still maintaining his long-term belief in Bitcoin, calling it "more of a timing issue than a direction issue."
The FTX Shadow
Part of SkyBridge's pain traces back to its ill-fated relationship with Sam Bankman-Fried. In September 2022, FTX Ventures announced it would acquire a 30% stake in SkyBridge — and just months later, FTX filed for bankruptcy and Bankman-Fried was arrested on charges of fraud. That association cost SkyBridge enormously in both money and reputation.
Coins Directly Involved
The SkyBridge saga touches several major assets:
(Bitcoin) — SkyBridge's core holding and the biggest driver of its fund swings
(Ethereum) — held across multiple fund vehicles
(Algorand) — SkyBridge's Legion Strategies fund had direct exposure to Bitcoin, Ethereum, and Algorand through its investment vehicles
Bottom Line: SkyBridge's story is a cautionary tale about institutional crypto investing done without tight risk management. The fund bet big on crypto, got caught in multiple downturns, tied itself to FTX, and now can't fully satisfy investors trying to exit. The fund's future depends on solving its ongoing redemption problems and enhancing returns to regain investors' trust. Meanwhile, the broader market watches closely — because when big institutional names bleed, sentiment across BTC, ETH, and altcoins tends to feel it too.
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