Bitcoin Is Not Yet a ‘Store of Value’ Asset, Says SkyBridge Capital Founder

On August 22, Anthony Scaramucci, founder and managing partner of SkyBridge Capital, participated in an interview on CNBC’s “Squawk Box,” where he shared his thoughts on Bitcoin and crypto in general.

Scaramucci opened by discussing the Wyoming Blockchain Symposium, noting its strategic timing and location near the Federal Reserve’s central banking conference in Jackson Hole. This juxtaposition was intentional, aiming to highlight the decentralized nature of blockchain technology in contrast to traditional central banking. The symposium attracted a significant number of high-level participants from the crypto industry, including notable figures such as Senator Cynthia Lummis, Senator Tim Scott, and former SEC Chairman Jay Clayton.

Scaramucci expressed optimism about Bitcoin’s future, particularly in the latter half of 2024. He pointed out that the “overhang of supply” seemed to be ending, which he interpreted as a positive sign for Bitcoin’s price trajectory. However, he also addressed a common debate comparing Bitcoin to gold. While gold has seen a 30% increase over the past two years, Bitcoin’s price has remained relatively stagnant. Despite this, Scaramucci reiterated his belief that Bitcoin is still in its early stages as a technology rather than a store of value. He suggested that with over a billion wallets, Bitcoin could eventually be seen as a store of value.

Scaramucci highlighted the potential of Bitcoin and other Layer 1 technologies to revolutionize payment systems and reduce transaction costs. He drew parallels to how technological advancements have previously reduced telecom costs and increased efficiencies in the economy. This, he believes, is the future trajectory for Bitcoin as it continues to integrate into the financial system.

A significant portion of the discussion centered around the impact of spot Bitcoin ETFs on the market. Scaramucci noted that the regulatory clearance for spot Bitcoin ETFs has made it safer for institutional investors to enter the market, with major firms like Morgan Stanley now allowing their financial advisors to solicit investments in Bitcoin. He mentioned that the launch of spot Bitcoin ETFs, particularly BlackRock’s, has been highly successful, marking the most successful ETF launch in history with $23 billion in assets under management.

Scaramucci acknowledged that while many in the industry expected Bitcoin’s price to reach higher levels by now, the timeline has been longer due to regulatory hurdles and market volatility. However, he remains confident that Bitcoin will eventually reach $100,000.

When discussing the current price action of Bitcoin, Scaramucci noted that approximately 65% of the inflows are going into spot Bitcoin ETFs, with the remaining 35% going directly into Bitcoin. He emphasized that the ease of buying Bitcoin through spot ETFs and storing it in brokerage accounts is contributing to this trend. He also highlighted Wall Street’s role as a “selling machine” that has yet to fully tap into the potential of Bitcoin and other digital assets.

The conversation also touched on the regulatory environment and its impact on cryptocurrency. Scaramucci mentioned that while former President Donald Trump initially criticized Bitcoin, there has been a noticeable pivot in his stance, as well as in the broader political landscape. He referenced recent comments by Senator Chuck Schumer about the possibility of passing crypto legislation by the end of 2024, suggesting that there could be growing bipartisan support for crypto regulation heading into 2025 and 2026.

Featured Image via Pixabay

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