Anthony Scaramucci, the founder of SkyBridge Capital, has voiced his skepticism towards meme coins, despite their recent high returns in the first quarter of 2024.
What Happened: Scaramucci opined on meme coins and the broader digital asset market at a conference in London on Monday, DLNews reported.
Scaramucci, whose fund holds Bitcoin BTC/USD, Solana SOL/USD and Ethereum ETH/USD, has initially faced criticism from his clients for investing in Bitcoin.
SkyBridge Capital started buying cryptocurrency in 2020 despite initially facing criticism. However, clients later praised Scaramucci for his foresight to get into cryptocurrencies early.
Scaramucci’s investment strategy appears relatively cautious. He recommends sticking to Bitcoin, Ethereum or Solana when building a portfolio, as these are more widely accepted.
Skybridge Capital will not touch meme coins despite returns north of 1,000% for the sector in the first quarter of 2024. The combined market capitalization of meme coins stands at $48.8 billion per CoinGecko data.
Despite the increasing acceptance of cryptocurrencies in institutional circles, Scaramucci stressed that many investors still approach it with caution. He also pointed out the ongoing negative sentiment towards digital assets among traditional finance leaders and politicians.
Also Read: What DOGE And SHIB Holders Can Learn From This Meme Coin Millionaire’s Trading Strategies
Why It Matters: While Scaramucci perceives cryptocurrencies as long-term assets, he encourages others to adopt the approach of BlackRock CEO Larry Fink.
Scaramucci states Fink is now touting "tokenization for every financial asset. And possibly every hard and soft asset is going to be tokenized."
His conservative approach to cryptocurrency investments aligns with his previous statements. He had earlier highlighted the significant role of spot Bitcoin ETFs in overcoming regulatory barriers and ushering new capital investments into cryptocurrency.
What's Next: The influence of meme coins and Bitcoin as an institutional asset class are topics expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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