Mike Novogratz’s Crypto Investment Firm, Galaxy Digital, Rolls Out A Suite of Ethereum Funds
Galaxy Digital is looking to provide Ether exposure to investors. The company has been expanding its portfolio across the crypto space lately.
Galaxy Digital, the crypto merchant bank led by former Goldman Sachs banker Mike Novogratz, appears to have lofty aspirations for 2021.
In line with its expansion plans, the company has announced the launch of a new Ether fund, hoping to grant investors more exposure to the leading altcoin.
Onshore and Offshore Investors Welcome
Galaxy Digital plans to launch three ETH-focused investment funds, according to documents shared by TheBlock. The primary fund is dubbed the Galaxy Ethereum Fund. Galaxy also plans to offer two other funds targeted at institutions.
The firm explained that its objective would be to provide a simple means for institutional investors to invest in Ether, allowing them to hold it without trading or conducting any activities themselves. The suite of Ethereum-focused funds is expected to kick off from mid-February.
The funds will target both American and foreign investors. Galaxy will charge a 1% management fee for investments above $100K and 1.25% for investments below that amount. Galaxy will draw its pricing from the Bloomberg Galaxy Ethereum Index, while Gemini would handle custody.
Galaxy Digital is also prepping up for an entrance into the decentralized finance (DeFi) sector. The burgeoning space has been off to a fiery start in 2021. Considering that most top DeFi protocols are built on the Ethereum blockchain, Galaxy Digital believes that increased adoption from them could benefit Ether in the future. An introductory blurb for the document reads,
“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. Galaxy Digital believes Ethereum is an emerging substrate for programming and interacting with digital value that will become ubiquitous in the future.”
It is unclear when the fund will launch, although it will most likely open to investors in the first half of the year.
Galaxy’s Big 2021
The Ether fund will be the second investment product that Galaxy Digital will launch in as many months. In November, the company announced that it had partnered with CI Global Asset Management, a Canadian investment company, to launch a public Bitcoin fund in the country.
Known as the CI Galaxy Bitcoin Fund, the investment product is a “closed-end investment fund” that will invest directly in Bitcoin, drawing its pricing from the Bloomberg Galaxy Bitcoin Index.
It will offer units of Class A and Class F shares at $10 each. CI Global will act as the fund’s manager, while Galaxy Digital will be its sub-advisor and execute all Bitcoin trading on its behalf.
Galaxy Digital has also cast its net into the mining space. It rolled out Galaxy Digital Mining, a self-styled “one-stop financial services platform for miners.” The subsidiary will provide risk management and trading for miners, as well as services like corporate advisory, lending, and investing.
The digital firm also opened a proprietary mining farm at a data center in the United States along with the service. Amanda Fabiano, the head of Galaxy Digital Mining, explained that both services would be complementary. Galaxy Digital hopes to step up for miners while also taking up a mining role.