SkyBridge Capital's affiliated fund with exposure to cryptocurrencies and equities in crypto companies Legion Strategies has suspended investor redemptions, Bloomberg has learned.
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The fund reportedly has about 10% in cryptocurrencies, such as bitcoin (EXANTE: Bitcoin), ether (ETH) and algorand (ALGO), and allocated 20% as private investments, including in FTX.
A spokesperson for SkyBridge said that the suspension is "driven largely by a liquidity mismatch resulting from late-stage private investments in the fund." The spokesperson added:
"SkyBridge funds do not have leverage. There is zero risk of any asset liquidation. The decision has been well-received by the majority of the fund’s investors."
According to reports, the fund will buy back 10% of its shares from investors at the end of September.
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