We already know Mike Novogratz has decided to start a hedge fund with $500 million dollars. January was the stipulated date to raise $350 million dollars. Due to the fact that Bitcoin lost part of its value in the last weeks of December, he has decided to suspend the plans for his hedge fund. But, instead, he is now planning to create a crypto version of Goldman Sachs. Will he be able to succeed this time?
Mike Novogratz’s Crypto Goldman Sachs
Novogratz has announced on Tuesday, that he is looking to raise $200 million dollars for Galaxy Digital LP, a banking business. The intention is to list the company on TSX Venture Exchange, a Canadian exchange created for companies with a small market capitalization.
The new bank will be created with Galaxy Digital LP, First Coin Capital Corp and Bradmer Pharmaceuticals Inc. The statement explains that the bank will aim to capitalize the market opportunities created by the ongoing evolution of the digital assets space. The bank main activities will be: trading, investing asset management and advisory.
“Galaxy Digital will leverage its deep ties into bitcoin, Ethereum and other protocol communities to drive returns from four core business segments: trading, principal investments, asset management and advisory,” reads the statement.
Mike Hedge Fund in Suspense
When the cryptocurrency market experienced a correction after Bitcoin reached $20,000, Mike Novogratz said that corrections happen but he is pausing his hedge fund. According to him, the market conditions were not appropriate for investing in the hedge fund and he was re-evaluating what he had in mind. He has also said that Bitcoin price could range between $8,000 and $16,000 un the next days and weeks before keeping the upward trend.
During a phone conversation with Bloomberg, Novogratz said that he looks ‘pretty smart pressing the pause button right now’. Besides that, he believes that Bitcoin could reach $40,000 dollars at the end of 2018 and that Ethereum could also keep increasing. Just some days ago, UseTheBitcoin wrote about Ethereum’s price increase.