Mike Novogratz’s Galaxy Digital Listing Another Bitcoin Fund

0
27

As Bitcoin 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 with 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 units 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. 

Suggested articles

Orbex Celebrates 10-Year AnniversaryGo to article >>

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 asset under management (AUM) of $407.4 million. Its trading unit also witnessed a 75 percent annual growth with a total trading volume of $1.4 billion in the quarter.

The company further 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 solutions by investors, corporates, and governments.”



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here