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Galaxy Digital Capital yesterday launched two Bitcoin funds: the Galaxy Bitcoin Fund and the Galaxy Institutional Bitcoin fund. Mike Novogratz, CEO and Founder of Galaxy Digital told Bloomberg the funds are targeting the wealth of Americathose aged between 50 and 80 who have so far been hesitant to invest in cryptocurrencies.

Novogratz said the new funds capitalize on Bitcoins popularity, which has drawn in high-net-worth individuals to the crypto space. There are probably 20 billionaires I could name that made their money outside of crypto and are in crypto now.

The next wave will come from the wealth advisers, maybe with endowments and small foundations participating, he added.

The Galaxy Bitcoin Fund has quarterly liquidity, and the minimum investment is $25,000. The Galaxy Institutional Bitcoin Fund has weekly liquidity, though the minimum investment is a higher, undisclosed amount.

Galaxy Digital Capital Management is a New York-based multi-service merchant bank dedicated to cryptocurrencies and blockchain. It holds over $337 million in assets, and offers two other funds: the Galaxy Crypto Index Fund, and its ecosystem funds.

"The Galaxy Bitcoin Funds help accredited investors mitigate the complexities and risks of managing direct bitcoin investments, said Galaxy Digitals Steve Kurz, Head of Asset Management in a press statement. Kurz will manage the funds with Galaxys portfolio manager, Paul Cappelli. Kurz told Bloomberg the new funds have been seeded with Galaxys own funds, as well as funds from its existing investors.

Is Galaxy Digital lost in its own crypto bubble? It's absolutely not madness, Eric Wall, Head of Research at crypto investment fund Arcane, tells Decrypt. The bitcoin is digital gold narrative is perhaps the greatest bitcoin story of all time for adoption. It is something people can both understand and tickles their fear of missing out, he says.

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Wall points to Bitcoins growth over the past decadethe nascent cryptocurrency worlds longest and most revered heritage. At some point people get tired of feeling like they're not getting it; that makes them more open to accept narratives that would have seemed like science fiction a few years ago, he says.

The fund aims to undercut rivals like Grayscale Bitcoin Trust. GBTC indeed has quite high fees in a market where the profit margins for third party storage services have shrunk considerably, says Wall. It is possible to do what Grayscale is doing for cheaper, and still earn a profit. This is just a healthy market in action.

Bakkt, the Intercontinental Exchanges crypto assets platform, as well as Fidelity Digital Assets, will assume custody of the funds. Bloomberg L.P., which previously partnered with Galaxy for its Bloomberg Galaxy Crypto Index, will act as pricing agent.

"As institutions and sophisticated investors seek exposure to digital assets through new investment products, they are seeking the highest standards in asset security, said Kelly Loeffler, CEO of Bakkt.

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Galaxy Digital Capital launches two new Bitcoin funds to court the wealth of America - Decrypt