Mike Novogratz is starting up the largest cryptocurrency focused hedge fund in the world.
Yes you read that right, not only will it be cryptocurrency focused, but it will be the largest of its kind in the world.
By quite a large margin actually.
Only two other hedge funds have raised tens of millions of dollars for the purpose of investing in cryptocurrencies, Polychain Capital and MetaStable Capital.
This fund is looking to dwarf those by raising close to $500 million.
Some Specifics:
The fund will be called the Galaxy Digital Assets Fund.
Novogratz will put up roughly $150 million of his own money and is looking to raise roughly another $350 million from family, accredited investors, and other hedge fund managers.
Although he can't comment on much of the specifics publicly just yet due to SEC rules, he is anticipating the fund will be fully capitalized and ready to go by January of 2018.
Why does the name Mike Novogratz sound familiar?
Mike Novogratz was formerly the CIO at Fortress Investment Group LLC before it closed shop back in 2015 and was later bought out by Softbank Group earlier this year (Feb. 2017).
He has a long history with macro trading, including spending time with Goldman Sachs.
Which is partly what makes his interest in cryptocurrency so interesting.
What is a macro guy doing getting involved with something that is so, well, abstract?
Why cryptocurrency?
Novogratz first become interested in cryptocurrencies when he lost one of his best employees a few years back to blockchain technology.
He thought, this is the start of something big if I am losing one of my really smart and talented employees to something that can pay him even more than I can.
Not long after, Novogratz made his first investments in Bitcoin and Ether.
His Ether investment was one he would end up making a fortune on.
He said he bought roughly $500k worth of Ether for under a dollar and sold the majority of it over $300. The bummer for him was that he said he originally was planning on buying $2 million worth but couldn't get enough orders filled because of a lack of liquidity.
Novogratz's predictions for the future are the really exciting part.
He thinks Bitcoin and cryptocurrency are likely going much much higher.
Check out this quote by Novogratz:
"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."
Woah.
He thinks prices are going way up from here.
Bubbles in general are formed around life changing technology. From railroads, to the internet, to blockchains. Every single one of those brought great innovation and massive price increases for a whole host of players.
The wheat eventually gets separated from the chaff, but not before outrageous prices are often reached.
Higher prices are coming?
Personally, I think we are part of a bubble as well, one akin to the dot-com bubble.
Great technology is coming (akin to the internet) and it is going to get way ahead of itself in terms of prices just like the tech stocks did in the 90's.
The question everyone wants to know (including myself):
What stage of that cycle are we in currently?
I would venture to say we have a few years left of substantially increasing prices ahead of us, before there is a great reckoning.
Lets read that last quote of his one more time...
“This is going to be the largest bubble of our lifetimes,” Novogratz said. “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's certainly putting his money where his mouth is, $150 million of his own dollars, and $500 million total.
Stay informed my friends.
Sources:
Image Sources:
https://www.fosterswiss.com/fondo-de-inversion-hegde-fund/fondos-de-inversion-hedge-fund-offshore/
https://www.coindesk.com/fortress-cio-mike-novogratz-explains-bullish-bitcoin/
https://bitnewsbot.com/institutional-investors-move-into-bitcoin-and-ethereum/
Follow me: @jrcornel
Thank you for posting @jrcornel.
It sounds like cryptocurrency hedge funds are the way to go.
I have heard those familiar with the tech bubble have the same view.
However.......it has been said that until there is more adoption of cryptocurrency there cannot be a bubble. Apologies that I cannot remember the percentage they were looking at.......It was Clif High's report that stated we are at one percent adoption now.
Thank you for your support.
All the best. Cheers.
what do you mean we're in a bubble?
thats some great news @jrcornel
Agree!
they need the money.
I always visit your blog because you inspires me. Do what you do. Thank you very much for sharing inspiring content.
Good post indeed which shows that cryptcurrencies are here to stay no matter the hates coming from fear mongers who are afraid of what blockchain technology will do to their monopolistic control of our finances. As I always indicate in my blog post, we need to be united in our support of blockchain technology especially our steem ecosystem because the future is very bright.
I gragree nice Post! keep it up !!
;o)
I would add one more thing.
Hold onto our coins. I believe said fear mongers are going to be on a shopping spree. They want to put the coins in their possession since they cant defeat it any other way. They have the fiat currency which is the on ramp into the crypto world.
hmmm, yeah, kind of disconcerting that hedge fund managers are getting involved, I just cringe at thoughts of manipulation, but hopefully the decentralization makes it more resilient, but i still don't understand enuff to know
Looks like he shot himself in the foot if he wants to ever get hired by Jamie Dimon...
Profit to had over the next couple years or more and some awesime tech so come with it
I imagine the tech will keep moving forward at a fantastic pace.
It will be a wild ride.
Yes glad to be in early
And the guy did what I did- he bought $500k of ethereum under $1 (my avg price was about $0.70, though I only bought $200k).
Did i just read buying $500k of Ether under a dollar and selling each at $300 ?
Anyone else find his sense of market timing unbelievably god-like? Just saying.
So basically now would be a really good time to start investing in cryptocurrency, right? Bitcoin and it's invasion in the financial world is surprising. Would you say that we're still on the runway with this? Or has the plane taken off yet?
The best time was last year....the second best time is right now.
If you are a long term holder, I think you are okay getting in now. There is a chance still of a pull back. However, I think it is safe to believe that cryptocurrencies will be higher a year from now.
Just be careful of what you invest in.
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This is very positive... more inflows coming to cryptocurriencies will mean higher prices. I do think there could be a bubble coming but this is so early in the game, we should have a ways to go before the run is over.
I agree @brian.rrr.
We are very early in the game. BTC and the other major coins have a long run in them. 2-3 years at a minimum.
Great post. I believe that someday bitcoin and other crypto might experience a bubble burst, but what people fail to understand is that a bubble burst does not mean the death of a thing. The internet companoes like Amazon and the rst experienced a bubble burst, but check out their value today.Even if crypto experiences one am totally convinced that it will bounce back, because the idea behind it is revolutionary. Great post
The bubble burst might be a 50% retracement which could come 300% higher from here.
Yah that's true. I just hope we profit from as much as we can. Goodluck
I think a lot of people are going to start on his path and crypto will be the next big thing , even ain't the dollar . This is the right time for us to be in the market while the fire starts
It is not a bubble it's reality, we are something small from something huge, nice post.
Good to know, wish I knew what he will be buying and when :)
Ah, wow. I will Google Mike Novogratz now!
Already invested in couple of crypto currencies with the help of some crypto gurus here at Steemit and @jcornel, you're one of them.
Great post. Thumbs up.
Steem On!
very interesting! 💰 💻 thx for sharing the news :) 👍
So much information @jrcornel thanks for sharing.
Yes, the Novogratz family office already has 10 percent of their net worth in ETH and BTC. He is treating it similar to gold as a must have for 10% of their portfolio. So he is rebalancing regularly to keep it at 10%. When ETH ran to $300 he sold to rebalance back down to 10% and likewise when it went back down he bought back in to rebalance at 10%. Very smart move so far.
Whole-heartedly agree. This is both revolutionary and largely a bubble. I don't see the July 2017 spurt as the first and only of its kind. That said, I think some of the ICOs that we are now seeing are going to emerge as the next Facebooks and Amazons - they will be very small in number, just like in the tech-bubble, but their rewards risk being even greater.
Personally I don’t think that crypto is a bubble, when the technology really becomes part of our daily routine you just use it without even knowing...there are a lot of coins that may blow up but crypto will remain and if you focus investing on the few really useful you will never regret it
Exactly, it's like any other bubble. It's a good investment if you get in the early stages and then take your $$$ when things start to crack.
This news makes it even more clear cyrpto will be around for a while and still has room to go.
I'm so confident that BTC will be positive over the next year I basically invested some "fun money" in what looks like maybe a btc pyramid scheme with https://bitconnect.co Been in 3 weeks already earned 30% return from daily payouts that I am cashing out. Be free rolling in a couple months :-)
looking forward ti
Wait until the investment space starts really focusing their investment dollar on cryptos. We haven't even begun rising in price yet :)
Thanks for keeping us informed.
I believe the exponential growth is only starting to take place. The total market cap for crypt is $150B and here is a guy who is looking to start a hedge fund with $500M....one guy. What does that do for the price when he takes that $500M and goes on a crypto buying spree? And we know he isnt the only one who will be entering this arena.
Cryptocurrencies will explode.
I thought the name was similar to Mike Wazowski lol
Stay informed? You're the only one keeping me informed! Don't stop now, it looks like some critical times are coming...
I don't see how the creation of a crypto hedge fund could anything but super positive for catching bids. Prices should keep trending up in the near future!
Thank you for the well-informed post! This is indeed a rather large deal! The amount of activity within cryptocurrencies and blockchain technology is absolutely exploding right now, and as @jerrybanfield seems to believe, the price of Steem specifically, is currently artificially low due to past issues with Steemit which scared investors away and that in the very near future, we are about to see an explosion in the price of Steem! I hope to hear more great content from you! Cheers!
Nice, it's a great news. Thanks for sharing.
One could say that we are in a price bubble and to be honest I think we probably are at this stage, however with that being said it's not exactly like the dotcom issue in my opinion. Bitcoin is in fact seeing mass adoption in countries such as Venezuela as well as rumours that it will start to be accepted by major eCommerce conglomerates such as Amazon. The dotcom bubble grew out of speculative or fad-based investing and many of these dotcom start ups never came to fruition. However with Bitcoin and other cryptos there is clearly future growth possibilities for them and if big business/ whole countries were to adpot it, the demand for Bitcoin would soar and thus the price as well. I then cannot see it falling significantly unless some catastrophic event occurs which then causes countries/ businesses to dump the use of Bitcoin / whichever crypto is being most commonly used at that time. Of course it could be overvalued during this initial growth phrase but just bear that in mind when investing and get in early. If you're on Steemit you're early. Honestly I'm not sure Bitcoin is going to be the crypto of the future but it is hard to predict. HOLDLN mine for a long time.
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Great news.. crypto currency can be use for hedge fund the futures..
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