Mike Novogratz to Launch $500m Crypto Fund Despite Identifying Historic Bubble

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’s incredible run in 2017 has managed to largely continue unabated up until recently. While many see signs of a bubble waiting to burst, others see grounds for more explosive gains – count hedge fund manager Mike Novogratz in the second camp. His bullish stance has led him to launch Galaxy Digital Assets Fund.

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Amidst a gradual acceptance of the cryptocurrency amongst hedge funds, brokerages, and investors, Mr. Novogratz has seemingly gone all in on Bitcoin. Despite this positive outlook on Bitcoin however, he still portends that the digital currency will be the largest bubble of our lifetimes.

“This is going to be the largest bubble of our lifetimes. Prices are going to get way ahead of where they should be. You can make a whole lot of money on the way up, and we plan on it,” he explained to Bloomberg Television.

This is going to be the largest bubble of our lifetimes

Mr. Novogratz is reportedly launching a new $500 million hedge fund, dubbed Galaxy Digital Assets Fund, to invest in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, initial coin offerings (ICOs), and related companies. This includes nearly $150 million of his own money, and he also plans to raise another $350 million by year’s end, per a Bloomberg report.

The launch comes amidst one of Bitcoin’s most trying times this year when it rapidly fell in price due to mandated Bitcoin exchange closures in China. The country’s hardened stance against ICOs was also a blow to cryptocurrencies, which sent prices careening off record highs.

For his part however, Mr. Novogratz remains undeterred. The launch of a $500 million hedge fund is also a second chance for Novogratz, who is looking to rebound after a stint at Fortress Investment Group LLC. At its launch, Galaxy Digital Assets Fund will instantly become the largest fund of its kind, vastly outpacing any other funds in terms of cryptocurrency exposure.

More specifically, Galaxy Digital Assets Fund will likely include market making, arbitrage, stakes in ICOs and other venture capital-style investments. Mr. Novogratz has secured two trading partners: Richard Tavoso, ex-Head of Global Arbitrage at RBC Capital Markets, and David Namdar, formerly of Millennium Partners, Marto Capital and UBS AG.