Mike Novogratz’s Galaxy Digital to Launch Several Ethereum Funds Citing ETH as Growth Asset

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by Bhushan Akolkar · 3 min read
Mike Novogratz’s Galaxy Digital to Launch Several Ethereum Funds Citing ETH as Growth Asset
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Staying bullish on Ethereum (ETH) as a potential growth asset, Galaxy Digital announced new ETH funds with onshore and offshore investment facilities.

Wall Street veteran Mike Novogratz‘s crypto investment firm Galaxy Digital is planning the launch of multiple Ethereum funds. In a document accessed by The Block, the firm has mentioned that it will be launching the Galaxy Ethereum Fund soon. Besides, it will bring two other ETH-funds focused on onshore and offshore institutional investors.

The offshore fund has a minimum investment requirement of $100K whereas the onshore fund has a $250K minimum investment. Obviously, these funds aim at providing exposure to investors to the world’s second-largest crypto assets. These funds will also be suitable for investors not willing to directly invest and hold ETH.

The latest announcement comes just at a time when the ETH price hits a new all-time high above $1450 on Monday, January 25. The crypto asset has already rallied more than 90% year-to-date. Ethereum is currently on the institutional radar with the scheduled launch of CME Ether Futures next week on February 7.

Interestingly, the funds point at the emerging DeFi protocols that can offer a potential growth area to the Ethereum network. The document states:

“Six applications in the Decentralized Finance space (“DeFi”) are now worth more than $1 billion and are generating up to $100s of millions in annualized revenue,” reads an introductory blurb. “Galaxy Digital believes Ethereum is an emerging substrate for programming and interacting with digital value that will become ubiquitous in the future.”

Galaxy Digital: Ethereum Is Going to Be a Growth Asset

Just like everyone, Galaxy Digital is pretty confident that Ethereum is likely to grow going further. The crypto investment fund stated:

“We consider ETH to be a growth asset; investing in ETH is similar to investing in a basket of early-stage, high-growth technology stocks that provides investors exposure to the explosion of next-gen smart contracts and decentralized applications”.

As of now, Galaxy Digital manages more than $800 million in assets under management. Besides, the company is also investing in new-age cryptocurrency startups worldwide. Galaxy Digital was currently leading a $25 million funding round in Singapore-based crypto startup Terraform Labs. The company has a huge market in South Korea and has gained enough popularity among users and merchants. During his interview with Bloomberg, Novogratz said:

“What’s great about Terra is they are one of the first sandbox experiments that’s getting outside the sandbox. We are always looking at those projects because they are the canaries in the coal mines of what else is going to happen.”

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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