Galaxy Digital launches two new funds targeting 1% of the wealthy

From the original (BNN Bloomberg), the original author: Olga Kharif

Source: Odaily Planet Daily Translator: Azuma

Galaxy Digital Holding Ltd, founded by investment legend and former Goldman Sachs executive Michael Novogratz, is launching two new bitcoin funds for qualified investors and institutional investors. The 54-year-old billionaire said in a telephone interview that his target is "the wealth class of the United States," a group of 50 to 80-year-olds who may have been basically cryptocurrency investments. edge.

Bitcoin investors tend to be younger and more tech-savvy, but the share of wealth in the US under 35 is declining. According to a 2017 study, the richest 1% of the US class controls about 40% of assets. Galaxy Digital's fund is designed to charge lower fees than competitors such as Grayscale Bitcoin Trust and use third-party hosting services from Bakkt and Fidelity Investments.

Steve Kurz, director of asset management at Galaxy Digital, said in a telephone interview: "The current situation of contact with Bitcoin is not complete. We are working hard to provide a safer, lower-cost service for contacting Bitcoin. We want to create something that can be accessed. Something about the existing infrastructure."

The first fund, called the Galaxy Bitcoin Fund, requires a minimum investment of $25,000, which is only allowed to be cashed once a quarter. The second fund is called the Galaxy Institutional Bitcoin Fund. It is more liquid and can be withdrawn every week, but the initial threshold is also higher. Bloomberg will act as the pricing agent for the two funds. Kurz said that both funds were “sowed” by Galaxy's own funds, and some of Galaxy's existing investors were involved.

Novogratz expects traditional financial services companies to allow users to invest in Bitcoin over the next 12 months. The new Bitcoin fund may attract investors who are currently buying gold.

Novogratz continues to:

  • "As you can see, bitcoin now outperforms other tokens, and I think this will continue until other tokens start to be used for something."
  • "(The field of cryptocurrency) has also gained more recognition – I can name 20 billionaires, they have made money in other areas, and now they are entering the field of encryption."
  • “Every speculative asset requires someone to tell the story, and people are buying stories.”

These two funds have joined many other new cryptocurrency services for institutional investors, and many institutional investors are still staying away.

Novogratz finally said: "The next wave of investment will come from wealth advisors, and there may be endowments and small foundations involved."