Novogratz to open $250 Million crypto fund, defying trends

27 Jan, 2019
by Arthur Sillers
Novogratz to open $250 Million crypto fund, defying trends

Mike Novogratz, the founder of Galaxy Digital, is defying the trends and starting a crypto hedge fund, even as many shut down their efforts.

While a number of gargantuan crypto funds were created at the beginning of 2018 when Bitcoin saw a meteoric rise in value, funds quickly cooled off following the significant crash, making the end of 2018 a record year for crypto fund closures.

According to Business Insider, the head of Crypto Fund Research Josh Gnaizda discussed his findings that 2018 was a record year for crypto launches, ‘The record number of new launches this year doesn't accurately reflect the current reality.’

The vast majority of funds launched last year were launched in the first quarter. A full quarter of all funds were launched in January alone. On the other hand, crypto funds saw a record number of closures following the market downturn.

Still, there were more crypto funds opened than closed, and the actual investment in crypto funds in general increased by $10 Billion globally. While Gnaizda predicts that the current bear market will still see increasing crypto fund closures, there is still interest in crypto investment.

For example, Michael Novogratz is creating a $250 Million cryptocurrency fund, also according to Business Insider. Sources close to Novogratz, the founder of Galaxy Digital say that funding began in March despite the depressed market. In Novogratz knows something everyone else doesn’t, crypto funds might start reappearing as the market heats up.

Read more: Mike Novogratz donates 2017 crypto earnings to Princeton, his alma mater 

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