Galaxy Digital is now planning new funds for Ethereum’s native coin, Ether.
The cryptocurrency investment firm Galaxy Digital is now planning new funds for Ethereum’s native coin named Ether.
According to the documents shared with the clients and then reviewed by The Block, the firm is launching a new vehicle named the Galaxy Ethereum Fund, together with two other ETH-focused funds driven toward onshore and offshore of the institutional investors. The onshore institutional fund requires a minimum investment of $250K, although the minimum is lowered to $100k for the offshore fund.
The new funds provided ETH exposure for investors who are not interested in holding or trading it by themselves.
The fund profiles point to DeFi protocols, a collection of peer-to-peer, non-custodial financial products, as a potential growth area for the network. Many of these projects have hinged on Ethereum-based tokens. What they suggest is suitable for Ethereum is also good for the Ether, the cryptocurrency.
“Six applications in the Decentralized Finance space (“DeFi”) are now worth more than $1 billion and are generating up to $100s of millions in annualized revenue,” reads an introductory advertisement. “Galaxy Digital believes Ethereum is an emerging substrate for programming and interacting with the digital value that will become ubiquitous in the future.”
The company is not yet available to comment.
The documents also revealed that the firm now has $815M under its management. For example, the crypto investment company Grayscale now has over $22B under management, and it has absorbed a significant amount of Bitcoin for its GBTC fund in the previous year. It has other funds focused on Ethereum, Stellar, and other crypto assets.
Mike Novogratz, a billionaire, and longtime crypto evangelist founded Galaxy Digital in 2018. It has already launched Bitcoin funds in the US and abroad; Galaxy Digital now offers trading and custody services through its partnership with Bakkt.
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