Key Takeaways
- • SkyBridge Capital's $1.3 billion Opportunity Fund fell 12.9% in Q1 2026, marking its second consecutive quarterly loss, driven primarily by 64% portfolio allocation to cryptocurrencies and digital assets.
- • Bitcoin has declined approximately 40% from its October 2025 peak of over $126,000, currently trading near $77,000, as digital-asset markets struggle to recover from a crash that erased roughly $1.7 trillion in aggregate market value.
- • The fund's crypto exposure concentrates in three major positions: 17.5% in Brevan Howard Digital Asset Multi-Strategy Fund, 9.58% in Galaxy Institutional Bitcoin Fund, and 8.79% in Purpose Bitcoin ETF, alongside holdings in actively managed digital-asset strategies and crypto-related private companies.
- • In the fund's latest tender offer (early May 2026), investors submitted 792,633.965 shares for redemption but the fund accepted only 64,378 shares, reflecting significant withdrawal restrictions amid ongoing losses.
- • Brevan Howard's BH Digital Asset fund, a major SkyBridge holding, declined approximately 30% in 2025, representing its worst annual performance since launching in 2021.
Summary
Anthony Scaramucci's SkyBridge Capital reported extended losses in its flagship Opportunity Fund, with first-quarter 2026 performance declining 12.9% as cryptocurrency exposure continues to weigh on returns. The $1.3 billion fund's heavy positioning in digital assets—representing 64% of total holdings—has become a significant drag as crypto markets remain under sustained pressure following an October 2025 crash that eliminated approximately $1.7 trillion in total market capitalization.
The fund's crypto allocation extends across multiple vehicle types rather than direct spot exposure alone. Leading positions include a 17.5% stake in Brevan Howard Digital Asset Multi-Strategy Fund, 9.58% in Galaxy Institutional Bitcoin Fund, and 8.79% in Purpose Bitcoin ETF, a Canadian-listed product. This diversified approach across actively managed digital-asset strategies and institutional crypto investment vehicles has not insulated the fund from broader sector weakness.
Bitcoin, the cryptocurrency sector's bellwether, remains significantly depressed relative to recent highs. The asset peaked above $126,000 in October 2025 but has since declined nearly 40%, currently trading around $77,000. This sustained weakness reflects broader digital-asset market challenges that have persisted for months without meaningful recovery momentum.
The fund's liquidity pressures have intensified alongside performance deterioration. During an early May 2026 tender offer, investors submitted approximately 792,634 redemption requests but SkyBridge accepted only 64,378 shares—representing roughly 8% of tendered requests. This selective acceptance illustrates constraints on fund liquidity and the operational challenges posed by concurrent losses and withdrawal demands.
Contributing to the fund's difficulties is the poor performance of Brevan Howard's BH Digital Asset fund, a substantial portfolio holding. According to prior Financial Times reporting, that fund declined approximately 30% during 2025, marking its worst annual result since inception in 2021. SkyBridge's significant exposure to this underperforming strategy has directly contributed to overall fund losses.
The fund's crypto allocation extends across multiple vehicle types rather than direct spot exposure alone. Leading positions include a 17.5% stake in Brevan Howard Digital Asset Multi-Strategy Fund, 9.58% in Galaxy Institutional Bitcoin Fund, and 8.79% in Purpose Bitcoin ETF, a Canadian-listed product. This diversified approach across actively managed digital-asset strategies and institutional crypto investment vehicles has not insulated the fund from broader sector weakness.
Bitcoin, the cryptocurrency sector's bellwether, remains significantly depressed relative to recent highs. The asset peaked above $126,000 in October 2025 but has since declined nearly 40%, currently trading around $77,000. This sustained weakness reflects broader digital-asset market challenges that have persisted for months without meaningful recovery momentum.
The fund's liquidity pressures have intensified alongside performance deterioration. During an early May 2026 tender offer, investors submitted approximately 792,634 redemption requests but SkyBridge accepted only 64,378 shares—representing roughly 8% of tendered requests. This selective acceptance illustrates constraints on fund liquidity and the operational challenges posed by concurrent losses and withdrawal demands.
Contributing to the fund's difficulties is the poor performance of Brevan Howard's BH Digital Asset fund, a substantial portfolio holding. According to prior Financial Times reporting, that fund declined approximately 30% during 2025, marking its worst annual result since inception in 2021. SkyBridge's significant exposure to this underperforming strategy has directly contributed to overall fund losses.
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