Galaxy Digital Asset Management, a division of the merchant bank Galaxy Digital, will soon launch two Bitcoin funds, the Galaxy Bitcoin Fund and the Galaxy Institutional Bitcoin Fund.
The Galaxy Bitcoin Fund will require a $25,000 minimum investment with optional quarterly redemptions. The Galaxy Institutional Bitcoin Fund will allow weekly withdrawals and require minimums higher than $25,000. Both funds will offer professional oversight of Bitcoin storage, tax documentation, and client service support.
Headed by billionaire ex-hedge fund manager Michael Novogratz, Galaxy is offering the funds to give accredited investors low-fee, institutionally managed Bitcoin exposure and will make a seed investment into both funds. Paul Cappelli is the portfolio manager for both funds, though they will be passively managed, meaning the investments (in this case, Bitcoin) are automatically selected.
In an interview recently, Novogratz said that Galaxy Digital Asset Management has plans to launch a new Bitcoin fund to allow people easy access to the world’s most popular cryptocurrency. He said, “It is just a Bitcoin fund that takes care of custody, takes care of pricing […] it just allows people to invest in Bitcoin without having to set up a Coinbase account, without worrying that their phone is going to get lost.”
The new Bitcoin funds from Galaxy Digital are expected to streamline the Bitcoin trading process and remove the existing pain points for investors as they hit the shelves. These funds will be taking care of custody and pricing so that users can invest in Bitcoin without having to set up a Coinbase account or having to worry that their phone might get lost.
However, Novogratz expressed minor apprehensions about the current trend in Bitcoin price. Now, since Bitcoin price has dropped well below $10,000, in the short term, things could take unpredictable turns as both the bulls and bears are wrestling for control. Standing at this point, veteran trader, Novogratz, who predicted Bitcoin’s current tight trading range months ago, seemingly continues to be bullish, as evidenced by the launch of Galaxy’s new Bitcoin funds.