Galaxy Digital forges forward with new funds which will provide higher capital investors with more opportunities to have secure exposure to bitcoin. The crypto asset merchant bank recently deployed two different bitcoin funds bringing more investment vehicles in the bitcoin sector. The first fund, the Galaxy Bitcoin Fund, and the second one, the Galaxy institutional Bitcoin Fund will allow for minimal fee institutionalized bitcoin exposure. The offering is available for accredited investors and institutions alike.
Investors will have the option to choose from Galaxy Bitcoin Fund for quarterly liquidity which calls for $25,000 deposits, or the Galaxy Institutional Bitcoin Fund for weekly liquidity and higher capital requirements.
These offerings show that the institutional framework is being built and that players such as Galaxy Digital are racing forward to capitalize and provide products to investors with more capital. Investors can be sure that these products will provide third-party custody, including tax documentation and exemplary customer service.
“Galaxy continues to have high conviction in bitcoin and has made significant strides in helping to bring a more institutionalized footprint to the digital asset ecosystem,” said Mike Novogratz, CEO and Founder of Galaxy Digital. “We believe this effort is an important step forward in fulfilling this mission.”
Of course, we will need to see adoption and interest. Bitcoin is currently in a bear market, and investors with larger capital must look at the long-term view for bitcoin and digital assets. Drawdowns like the one the cryptocurrency sector is in right now, does not help those who seek to be in the sector for a short while.
“The Galaxy Bitcoin Funds help accredited investors mitigate the complexities and risks of managing direct bitcoin investments. The funds provide investors bitcoin exposure with institutionally secure third-party custody, best-in-class service providers, and Galaxy’s platform support,” said Steve Kurz, Head of Asset Management at Galaxy Digital.
The move is an important for one Galaxy Digital as it seeks to carve a nice within the institutional world. It will be difficult, at first, be a large provider, as large entities like Fidelity Digital Assets, and other large traditional providers seek to dominate the institutional sector. Even crypto oriented firms such as Coinbase and Gemini are increasing their efforts to bring in more institutional clients with activities such as buying Xapo, or being custody providers. Players such as Galaxy Digital must find ways to stabilize revenues by managing and advising institutional entities.
The firm engages in trading, principal investments, asset management, and advisory services. Galaxy Digital allocated investments to entities such as Tagomi Holdings, BlockFi Lending, Nammu21, and Fireblocks within the previous quarters. The partnership has also added more funds to Bison Trail, SpringCoin, and Alphapoint according to a recent corporate filing.
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