In brief
- Galaxy Digital, the crypto investment firm masterminded by Mike Novogratz, is launching new funds centered around Ethereum.
- The Galaxy Ethereum Fund, along with two other funds geared toward institutions, will provide exposure to Ether (ETH), the Ethereum network’s native cryptocurrency.
- Galaxy Digital has $815 million under management.
The cryptocurrency investment firm Galaxy Digital is planning new funds for Ethereum's native coin, Ether.
According to documents shared with clients, and reviewed by The Block, the firm is launching a vehicle called the Galaxy Ethereum Fund, along with two other ETH-focused funds geared toward onshore and offshore institutional investors. The onshore institutional fund requires a minimum investment of $250k, though the minimum is lowered to $100k for the offshore fund.
These new funds provide exposure to ETH for investors who aren’t interested in holding or trading it 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 hinge on Ethereum-based tokens. What’s good for Ethereum (the network), they suggest, is good for 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 blurb. “Galaxy Digital believes Ethereum is an emerging substrate for programming and interacting with digital value that will become ubiquitous in the future.”
The company was not immediately available for comment.
The documents also reveal that the firm now has $815 million under management. For context, the crypto investment company Grayscale now has over $22 billion under management—it’s absorbed a huge amount of Bitcoin for its GBTC fund over the past year, and has other funds focused on Ethereum, Stellar, and other crypto assets.
Billionaire and longtime crypto evangelist Mike Novogratz founded Galaxy Digital in 2018. It’s already launched Bitcoin funds in the US and abroad; Galaxy Digital also offers trading and custody services through its partnership with Bakkt.