SkyBridge Fund Plunges 12.9% in Q1 as Crypto Exposure Drags Returns

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SkyBridge Fund Slides 12.9% in Q1 as Crypto Exposure Drags Returns

Key Highlights

  • SkyBridge’s $1.3B fund fell 12.9% in Q1 2026 after an 18% drop in Q4 2025.
  • Around 64% of the portfolio remains tied to crypto and digital asset investments.
  • Investor pressure increased, with only 8.1% of withdrawal requests approved.

SkyBridge Capital’s Opportunity Fund, managed by Anthony Scaramucci, continued to lose money in the first quarter of 2026, experiencing its second consecutive quarterly loss. This downturn happened as the overall market weakened, falling from a valuation of around $4 trillion last year to $2.57 trillion.

The fund experienced a downturn, dropping 12.9% in the first quarter of 2026. This followed an 18% decline in the last three months of 2025. While the fund did see a slight increase of 0.45% in March, it wasn’t enough to recover the losses from earlier in the quarter.

Approximately 64% of the fund’s investments are still in cryptocurrencies and digital assets, such as crypto hedge funds, Bitcoin investment products, and private companies working with cryptocurrency.

Crypto market faces selling pressure 

As a researcher, I’ve been observing significant market strain following the substantial crash last October. That event wiped out approximately $1.7 trillion in value, and the market hasn’t fully recovered since.

Bitcoin, the leading cryptocurrency, is currently valued at $76,860. This represents a significant decrease of around 40% from its highest value of over $126,000, and many investors are feeling the impact of this downturn.

This situation has made it challenging for investment strategies focused on Bitcoin and other cryptocurrencies, particularly for funds heavily invested in the crypto market.

How crypto exposure shaped results

SkyBridge Capital diversifies its crypto investments across multiple assets instead of concentrating on just one. Its biggest investment is a 17.5% share in the Brevan Howard Digital Asset Multi-Strategy Fund. They also hold approximately 9.6% in the Galaxy Institutional Bitcoin Fund and around 8.8% in the Purpose Bitcoin ETF, which is based in Canada.

Brevan Howard and Galaxy are financial firms that specialize in managing digital assets like cryptocurrency. Purpose Bitcoin ETF is a Canadian fund that allows investors to track the price of Bitcoin through a standard exchange-traded fund. These three represent the biggest investments within the portfolio’s cryptocurrency holdings, making up the largest portion of its crypto assets.

Investors are putting pressure on the fund, recently requesting to sell back 792,633.965 shares in early May. However, the fund only bought back 64,378.34 shares, meaning only about 8.1% of the requests were fulfilled. The fund lacked enough available cash to meet all the withdrawal requests.

The fund bought back shares from investors proportionally, based on how much each investor owned, and within the limits of the fund’s structure.

Other firms report weak Q1 results

SkyBridge wasn’t alone in reporting disappointing results for the first quarter. Earlier this month, Coinbase also announced a tough start to 2026. While the company brought in $1.4 billion in revenue, it experienced a net loss of $394 million. This resulted in a loss of $1.49 per share, significantly lower than the 27-cent profit analysts had predicted.

Coinbase announced it will be reducing its workforce by about 14%, which will result in costs between $50 and $60 million. Following the announcement of these earnings, Coinbase stock dropped approximately 4% in after-hours trading.

However, other firms like Securitize, Zcash, Kraken, and Metaplanet reported positive results.

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2026-05-22 21:32