Two new Bitcoin funds will soon grace the market. Galaxy Digital Capital, the well-known cryptocurrency-based hedge fund, will be launching two new Bitcoin (BTC) funds, namely the Galaxy Institutional Bitcoin Fund and the Galaxy Bitcoin Fund. The firm currently manages three hundred thirty-seven million dollars (337M) in assets.
Each of these new funds will be aiming at a specific set of investors. Both are aimed at wealthy retail and institutional investors. The Galaxy Bitcoin Fund will focus on higher age group retail investors with a minimum investment of twenty-five thousand dollars (25K). Users will be allowed only one withdrawal per quarter in this fund. On the other hand, the Galaxy Institutional Bitcoin Fund will focus on institutional investors and feature an even higher minimum deposit for a subscription. However, investors can make one withdrawal per week.
Bakkt will be the underlying platform that will power both these funds in terms of transactions. Bakkt, an Intercontinental Exchange subsidiary, will serve as a custodian. The role of the pricing agent will be undertaken by Bloomberg. The firm already runs Bloomberg Galaxy Crypto Index in partnership with Galaxy Digital Capital. All these are ingredients of a successful crypto hedge fund in the making.
Bitcoin funds will be powered by Bakkt
Bakkt CEO, Kelly Loeffler, adds that both retail and institutional investors today want exposure to digital assets. At the same time, older investors seek the security of the highest standards when they invest. The addition of Bakkt to these funds ensure that institutional-grade security is provided to the digital assets for safeguarding and transactional purposes. Products like Galaxy Bitcoin Funds will not only help expand the crypto market, and it will also promote higher safety standards in the industry.
The primary concept behind these bitcoin funds is to bring the older investors to the Bitcoin investment era, albeit safely. These Bitcoin funds will not have lengthy processes or security risks associated with the crypto market. Rather, they would offer exposure to the future digital assets wrapped in a hedge fund blanket. Investors don’t have to worry about storing bitcoins and will focus only on the fund.
In other words, these Bitcoin funds are geared towards invoking a sense of confidence in the investor community regarding bitcoins. Also, it aims to build a Launchpad for the future launch of similar funds where big investors can join.
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