Galaxy Digital Capital, a crypto hedge fund which manages $337 million of assets, has announced that they are launching two new Bitcoin (BTC) funds including the Galaxy Bitcoin Fund and the Galaxy Institutional Bitcoin Fund.
The Galaxy Bitcoin Fund is apparently aimed at wealthy and older retail investors, and has a $25,000 minimum investment and only allows fund withdraws once per quarter. The Galaxy Institutional Bitcoin Fund has a higher minimum deposit and allows fund withdraws once per week, and is tailored for institutional investors.
These new funds will use Bakkt, a crypto investment platform that is a subsidiary of the Intercontinental Exchange (ICE), as a custodian. Bloomberg will act as a pricing agent, and has already worked with Galaxy Digital Capital in the past via running the Bloomberg Galaxy Crypto Index.
Kelly Loeffler, the CEO of Bakkt, says “As institutions and sophisticated investors seek exposure to digital assets through new investment products, they are seeking the highest standards in asset security. The Bakkt Warehouse was designed to offer institutional-grade custody in safeguarding digital assets and to support the development of the market alongside products like the Galaxy Bitcoin Funds.”
Essentially, the point of these two new Bitcoin (BTC) funds is so that investors can directly invest in Bitcoin (BTC) with ease, rather than the complex process and security risks of storing large amounts of Bitcoin (BTC) without any help.
In other words, these new crypto funds give investors confidence when investing in Bitcoin (BTC), and simplify the process, making it more likely that big investors will buy Bitcoin (BTC) in the future.
That being said, for experienced Bitcoin (BTC) users who know how to properly secure a wallet, it would not provide any advantage to participate in funds like this, especially since these new funds from Galaxy Digital Capital do not allow investors to sell their coins at will, which can lead to losses…