During a keynote speech at Blockchain Week Korea, former hedge fund manager of Fortress Investment Group Michael Edward Novogratz stated that a “herd of institutional investors” is coming to cryptocurrency.
The narrative that “smart money” and “institutional money” is coming to save cryptocurrency from its current bear market is one that has been repeated like a broken radio in 2018, but many times the statement comes without evidence or support. Novogratz, on the other hand, had a lot to say when asked to reason why he believes that institutional money will join the cryptocurrency craze.
This is how he believes that the long-awaited money will enter the fray:
"Their first way of participating is going to be through venture-capital funds. Many of them are already participating because they've invested in Sequoia or Polychain or Benchmark or many of the other VC funds that invest in this area. The second step for them will be buying the coins and/or the ICOs themselves, but many of them are participating in the ICOs already through their venture investments."
Named a billionaire by Forbes, Novogratz is known to have invested 10 percent of his total wealth into cryptocurrencies. He has invested into projects such as Bitcoin, Ethereum, and EOS.