Mike Novogratz's Galaxy Digital Raised $58.7 million for Bitcoin Funds

The investments mostly came from high-net-worth and institutional investorsPhoto: FM

The Bitcoin funds managed by Mike Novogratz-owned Galaxy Digital have raised $58.7 million in the first year of their operations, according to a couple of recent SEC Form-D filings.

Galaxy Digital manages multiple Bitcoin funds: Galaxy Institutional Bitcoin Fund LP and Galaxy Bitcoin Fund LP. The first one received $55.1 million, while the other one got $3.6 million, primarily from wealthy and institutional investors.

Launched last November, Galaxy Institutional Bitcoin Fund has a minimum investment requirement of $250,000 and is specifically targeted to meet the growing demand of institutions for Bitcoins. This fund received proceeds from 33 investors in one year of its operation.

Galaxy Bitcoin Fund is a smaller fund, also launched in Nov, 2019, and attracted 56 investors, each with an investment of at least $25,000.

Galaxy Institutional Bitcoin Fund, Ltd, another entity under Novogratz’s Galaxy Digital, raised $45 million from 13 investors, according to Wednesday’s SEC filing. However, it is not clear if this fund is independent or related to Galaxy Institutional Bitcoin Fund LP.

Institutions Jumping into Crypto

Institutional demand for Bitcoin skyrocketed in recent years, which presumably caused the ongoing rally of the digital currency market. Similar to Galaxy Digital, other Bitcoin fund operators are also witnessing massive growth in demand.

“Bitcoin has become a macro asset to hedge against the debasement of fiat currency both here in the U.S. and abroad,” billionaire Novogratz said in a recent interview with Yahoo Finance. “Everyone should put 2% to 3% of their net worth in Bitcoin and look at it in five years, and it’s going to be a whole lot more.”

Meanwhile, Galaxy Digital is preparing to publicly list another Bitcoin fund in Canada, which will be managed by CI Global Asset Management (CI GAM).

Reprinted from financemagnates, the copyright all reserved by the original author.