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Galaxy Digital CEO and chairman Michael Novogratz spoke to Squawk Box recently about the launch of their new Bitcoin fund.
In the interview, Novogratz eluded to Galaxy Digital Asset Management’s plans to launch its new Bitcoin fund.
This would allow the most popular cryptocurrency to be accessible to people with ease. In the interview with Squawk Box, he said that a Bitcoin fund takes care of custody and of pricing.
It allows people to invest in Bitcoin without the hassle of having to set up a Coinbase account. It also negates the worry of losing one’s phone.
Novogratz is positive about the future of Bitcoin saying that he hoped that it held its current financial position. He said that with new energy injected into the currency it was set to make a big move forward.
Bitcoin investors have been hoping that it holds where it is but $6,500 would be the next downslide.
Novogratz says that with new energy injected into it the currency could easily trade again at $8,000 to $10,000 with an average of $8,200.
Galaxy’s launch has not been all that clandestine though. Coindesk has reported that Galaxy would launch two Bitcoin funds in the very near future.
According to an unnamed source, Galaxy will provide a seed investment into both fund accounts.
Galaxy Bitcoin Fund, the first of their funds would require a minimum investment of $25,000. The second fund, Galaxy Institutional Bitcoin Fund would need much higher investment.
Goldman Sachs Involvement
The Financial Industry Regulatory Authority has granted approval for Galaxy Digital to underwrite registered public offerings of securities.
This means that Galaxy Digital can offer cryptocurrency investments through their company, legally facilitating security token offerings.
Michael Novogratz is a former partner of Goldman Sachs so it seemed a natural progression for his company.
His vision for Galaxy Digital is to fill a similar role in cryptocurrency by underwriting security offerings. He believes that it is a good add on to Galaxy’s existing services rendered.
Novogratz said that the industry is still incredibly young and that Galaxy digital was also a young business.
According to him, Galaxy Digital remains patient and stoic in their predictions on how fast their Bitcoin offerings would grow.
The company however is well-capitalized and adding cryptocurrency to their portfolio is a perfect progression and addition.
Cryptocurrency Growth
Cryptocurrency has not to date succeeded in bringing in the masses to buy Bitcoin. The fact that leading cryptocurrency displays huge fluctuations in price makes it difficult to get people to invest significant amounts of money.
Because of this, numerous companies have been easing into crypto investments opting to continue to plow the bulk of their investments into traditional channels.
With companies like Galaxy Digital dipping their toe into the water though it seems that traditional mindsets are slowly changing.
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