Mike Novogratz’s Galaxy Digital Launching a Bitcoin Fund

As Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term is pushing towards attaining its late-2017 peak, Galaxy Digital, the crypto-focused merchant bank founded by Mike Novogratz, joined hands with CI Global Asset Management (CI GAM) to publicly list a new Bitcoin fund.

CI GAM will manage the new Bitcoin fund, while Galaxy Digital will act as its sub-advisor, meaning it will execute all Bitcoin trading on-behalf of the fund.

Dubbed CI Galaxy Bitcoin Fund, the fund will be closed-ended and CI GAM has already filed and obtained a receipt for the preliminary prospectus for the initial public offering (IPO).

Monday’s announcement detailed that the investment fund will directly invest in Bitcoins priced using the Bloomberg Galaxy Bitcoin Index, which measures the performance of Bitcoins against the US dollar.

Though the total size of the fund is not yet known, it will offer units of Class A and Class F at a price of $10 each.

Rising Demand for Crypto

Headquartered in New York, Galaxy Digital gained traction in the crowded industry, mainly due to its billionaire founder, Mike Novogratz. The company offers a range of crypto-focused services, including asset management, trading, and investment banking services.

The announcement of the new fund came when Bitcoin is showing a bullish rally, and the demand for Galaxy Digital’s services is also rising.

In its Q3 financial update, the Galaxy Digital Asset Management business revealed that it has a total of asset under management (AUM) of $407.4 million. Additionally, its trading unit witnessed a 75 percent annual growth with a total trading volume of $1.4 billion for the quarter.

Further, the company reported an income of over $44.6 million in the third quarter of 2020.

Last week, Finance Magnates reported on Galaxy Digital’s acquisition of two cryptocurrency companies, crypto lender, DrawBridge and proprietary trading firm, Blue Fire Capital.

“Galaxy Digital made progress across our business lines in the third quarter, including record volumes in our Trading business,” Novogratz said recently. “We've taken several key steps forward in the second half of 2020...incoming wave of institutional adoption ahead of digital assets and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term solutions by investors, corporates, and governments.”