SkyBridge Capital founder and managing partner Anthony Scaramucci shared his thoughts on Bitcoin and the general cryptocurrency landscape during an interview on CNBC's Squawk Box.
Scaramucci expressed optimism about Bitcoin’s future, particularly in late 2024. He noted that the “oversupply” appears to be decreasing, which is a positive sign for Bitcoin’s price. Scaramucci also touched on the ongoing comparison between Bitcoin and gold, acknowledging that while gold has risen 30% in the past two years, Bitcoin has remained relatively stable. However, he argued that Bitcoin is still in its early stages as a technological innovation rather than just a store of value. He suggested that as adoption increases, with potentially over a billion wallets in use, Bitcoin could solidify its position as a store of value.
Scaramucci also highlighted the transformative potential of Bitcoin and other Layer 1 technologies to revolutionize payment systems and reduce transaction costs. Drawing analogies to past technological advances in telecommunications, Scaramucci believes Bitcoin will follow a similar path, increasing efficiency and becoming more integrated into the financial system.
The impact of spot Bitcoin ETFs on the market was also discussed. Scaramucci believes that regulatory approval for these ETFs makes it safer for institutional investors to enter the crypto space. Firms like Morgan Stanley now allow financial advisors to solicit Bitcoin investments; this shift was fueled by the successful launch of spot Bitcoin ETFs like BlackRock’s, which raised $23 billion in assets, making it the most successful ETF launch in history.
While some expected Bitcoin to reach higher price levels by now, Scaramucci noted that regulatory challenges and market volatility have delayed its rise. However, he remains confident that Bitcoin will eventually reach the $100,000 mark.
Scaramucci noted that about 65% of recent inflows have gone into spot Bitcoin ETFs, with the remaining 35% going directly into Bitcoin. The trend is being driven by the increasing ease of buying Bitcoin through ETFs and storing it in brokerage accounts. He also pointed to Wall Street’s potential as a “sales machine” that has yet to fully capitalize on the Bitcoin market.
On the regulatory front, Scaramucci addressed the evolving political stance on cryptocurrencies. While former President Donald Trump initially criticized Bitcoin, there has been a shift in his position reflecting broader changes in the political landscape. Referencing Senate Majority Leader Chuck Schumer’s recent comments about the possibility of passing crypto legislation by the end of 2024, Scaramucci suggested that bipartisan support for crypto regulation could grow as we move closer to 2025 and 2026.
*This is not investment advice.