As Bitcoin is pushing towards attaining its late-2017 peak, Galaxy Digital, the crypto-focused merchant bank founded by Mike Novogratz, joined hands with CI Global Asset Management (CI GAM) to publicly list a new Bitcoin fund. CI GAM will manage the new Bitcoin fund, while Galaxy Digital will act as its sub-advisor, meaning it will execute all Bitcoin trading on-behalf of the fund. Dubbed CI Galaxy Bitcoin Fund, the fund will be closed-ended and CI GAM has already filed and obtained a receipt for the preliminary prospectus for the initial public offering (IPO). Monday’s announcement detailed that the investment fund will directly invest in Bitcoins priced using the Bloomberg Galaxy Bitcoin Index, which measures the performance of Bitcoins against the US dollar. Though the total size of the fund is not yet known, it will offer units of Class A and Class F at a price of $10 each. Headquartered in New York, Galaxy Digital gained traction in the crowded industry, mainly due to its billionaire founder, Mike Novogratz. The company offers a range of crypto-focused services, including asset management, trading, and investment banking services. LegacyFX Expands to South Africa and Appoints New Managing DirectorGo to article >> The announcement of the new fund came when Bitcoin is showing a bullish rally, and the demand for Galaxy Digital’s services is also rising.  In its Q3 financial update, the Galaxy Digital Asset Management business revealed that it has a total of asset under management (AUM) of $407.4 million. Additionally, its trading unit witnessed a 75 percent annual growth with a total trading volume of $1.4 billion for the quarter. Further, the company reported an income of over $44.6 million in the third quarter of 2020. Last week, Finance Magnates reported on Galaxy Digital’s acquisition of two cryptocurrency companies, crypto lender, DrawBridge and proprietary trading firm, Blue Fire Capital. “Galaxy Digital made progress across our business lines in the third quarter, including record volumes in our Trading business,” Novogratz said recently. “We’ve taken several key steps forward in the second half of 2020…incoming wave of institutional adoption ahead of digital assets and blockchain solutions by investors, corporates, and governments.”

TL:DR Breakdown:

Galaxy Digital, founded by Mike Novogratz, has reportedly raised almost $60 million from institutions and large investors via two of its Bitcoin funds. This is quite another milestone, as both products were launched last year and have attracted many deep-pocketed investors within a year. Standing on the progress, the crypto asset management company recently disclosed its plans to launch a similar product in the Canadian market.

According to recent filings with the US Securities and Exchange Commission (SEC), the company gained $58.7 million from its Bitcoin funds – the Galaxy Bitcoin Fund LP and Galaxy Institutional Bitcoin Fund LP. The Galaxy Bitcoin Fund received about $3.6 million from institutional investors. Last November, the fund was launched and had attracted up to 56 investors, with at least $25,000 as a minimum investment.

Launched in the month, the Galaxy Institutional Bitcoin Fund gained a higher amount of $55.1 million, according to the report. It attracted capital from about 33 investors despite having a higher entry point than the other Bitcoin fund. Institutional investors are allowed at a minimum investment of $250,000. The growth of Galaxy Digital Bitcoin funds is quite not an unusual development as other fund managers have also been posting massive growth.

On November 17, the assets management company partnered with a Canadian firm, CI Global Asset Management, to expand its Bitcoin fund products to Canada, providing the investors more exposure to the cryptocurrency. The Galaxy Digital partner will manage all Canadian funds.

Menu Reading About NewsBusinessGalaxy Digital Bitcoin Funds Returned 17% in Third QuarterBy 1 min readNov 13, 2020Nov 13, 2020Bitcoin's price has gone up during Q3 2020. Image: Shutterstock. Crypto asset manager Galaxy Digital, led by billionaire investor Mike Novogratz, reported today that its funds have yielded investors 17.3% in returns over the course of Q3, 2020. According to the company’s “,” its Galaxy Bitcoin Fund, LP, Galaxy Institutional Bitcoin Fund, LP and Galaxy Institutional Bitcoin Fund, Ltd “offer institutional and accredited investors institutionally wrapped bitcoin exposure supported by vetted service providers.” “The Galaxy Bitcoin Funds track the Bloomberg CFIX pricing of bitcoin ("XBT"), and the XBT returned 17.3% in the third quarter of 2020 and has returned 125.7% on a year to date basis through November 12, 2020,” the asset manager reported. Simultaneously, the company’s crypto-focused Galaxy Benchmark Crypto Index Fund LP (which tracks Bloomberg Galaxy Crypto Index) returned 32.3% in Q3—or 126.7% on a year-to-date basis. Galaxy Digital also disclosed that it currently has $407.4 million worth of assets under its management. As Decrypt reported recently, Galaxy Digital Holdings is among the with the biggest Bitcoin portfolios. And, so far, its investment is paying dividends. oin-funds-returned-17-in-third-quarterRead on the Decrypt App for the best experience. For the best experience, top crypto news at your fingertips and exclusive features download now. Menu About

News Bitcoin NewsEthereum NewsAltcoin NewsBlockchain NewsScam NewsRegulation NewsLitecoin NewsRipple NewsMonero News Features Hodlers DigestFollow-UpAnalysisOpinionIn DepthQuizInterview Price Analysis Top 10 CryptocurrenciesWeekly OverviewMarket Analysis Market Tools Price IndexesICO CalendarHeatmap Cryptopedia ExplainedPeopleBitcoin101Ethereum101Bitcoin Cash101ICO101Ripple101Lightning Network101BTC Anniversary Industry DApplistEventsPress ReleasesJobs Store BlockShow 15 HOURS AGOBy Galaxy Digital Fund Leads Funding Round for Blockchain-Based Game Platform A Galaxy Digital fund led a $1.8 million seed funding round for a blockchain-based gaming rewards program, which uses blockchain-based quizzes to engage players.A Galaxy Digital fund led an almost $2 million funding round for a blockchain-based engagement program for online gamers 3977 Total views 108 Total shares A fund of Galaxy Digital led a $1.8 million seed funding round for Azures -based rewards platform, VentureBeat on June 5.Smart Challenge, Azures gaming rewards platform, reportedly allows users to create and compete in challenges on the EOSIO blockchain protocol. By using blockchain technology, the challenges are said to be verifiably fair, since participants can see all the challenge rules and how they are implemented.Galaxy Digital reportedly invested to the project through its Galaxy EOS VC Fund, which is an investment organization that products built on EOSIO.Users can participate in the challenges to earn AZA credits which are used to buy in-game benefits, such as virtual items or currency. One type of challenge users can reportedly participate in are streaming questions, which reference activity in esports streams; answering correctly rewards successful participants with AZA credits.Smart Challenge was first launched in 2018, and is designed to increase player engagement with their preferred games and esports, via both spectating and playing.The Azure platform has reportedly been undergoing pilot tests in Ubisofts Entrepreneurs Lab, a branch of Ubisoft that is an incubator for tech startups within the gaming and entertainment sectors. The research purportedly showed that spectator streams with Smart Challenge outperformed traditional streams, in terms of bolstering viewership and gameplay numbers.As previously by Cointelegraph, game developer Lucid Sight raised $6 million in April for its blockchain-based game engine Scarcity Engine. The Scarcity Engine is intended to support the companys blockchain-based games on traditional platforms, including PCs, gaming consoles, and mobile devices. The new engine is purportedly coming out in 2019, and will feature its blockchain-based games Major League Baseball and Crypto Space Commander. Editors Choice

Huobi Asset Management is set to launch a bitcoin (BTC) tracker fund, an Ether (ETH) tracker fund, and a multi-strategy digital asset fund, after successfully gaining the approval of the Hong Kong Securities and Futures Commission (SFC), according to reports on March 4, 2021.

With the global cryptocurrency markets now at a massive $1.45 trillion market capitalization, Huobi Technology Holdings, a fully-owned subsidiary of Huobi cryptocurrency exchange, is aiming to make the most of the crypto boom by launching new digital asset funds.

Per sources close to the matter, Huobi Technology Holdings, which is listed on the Hong Kong stock exchange, says it’s looking to launch a bitcoin price tracker fund, an ether tracker fund and a multi-strategy digital asset fund. The three investment vehicles will be 100 percent invested in cryptocurrencies.

What’s more, the firm has hinted that it also aims to introduce a multi-asset fund that will consist of 10 percent digital assets and 90 percent equity and fixed income investments, with both funds accepting fiat and crypto subscriptions.

At the time of filing this report, the entire details of the proposed fund are yet to be released and the firm has stated categorically that it’s still holding talks with the relevant stakeholders. Commenting on the project, Mandy Liu, vice president of Investor Relations at Huobi Tech said:

“The size of the funds is under discussion and depends on the development of distribution channels. We aim to become the leading virtual asset management company in Asia in the near future.”

As reported by BTCManager last August, Huobi Asset Management obtained two important licenses: a Type 4 (advising on securities) and a Type 9 (asset management) from the SFC. However, the country’s existing laws still required the firm to seek formal approval from regulators before rolling out a full-fledged crypto fund.

It’s worth noting that Huobi Asset Management’s journey began in 2018 when its parent firm acquired Pantronics Holdings for $77 million. The acquired firm was then rebranded and renamed Huobi Technology Holdings in 2019. 

Cryptocurrency funds give investors exposure to digital currencies and save them the stress of storing the assets themselves and these investment vehicles are increasingly gaining popularity, as the price of bitcoin (BTC) and other digital currencies continue to rise.

In April 2020, Hong Kong regulators gave Venture Smart Asia Ltd the go-ahead to launch a $100 million crypto fund that targets only institutional investors.  Two bitcoin exchange-traded funds (ETFs) went live in Canada in late February 2021, and the nation’s financial regulator is on the verge of approving a third ETF.

Cryptocurrency Fund Galaxy Digital Announces $272.1 million Loss in 2018 In a press release to Cision, April 29, 2019, Galaxy Digital Holdings, the investment fund run by ex-Fortress fund manager Michael Novogratz, has announced a net comprehensive loss of $272.1 million for the last year. Reportedly, the majority of the decline is from the sale of digital assets at a loss and venture investments. Galaxy Digital has announced yet another loss in their annual filing with Canadian securities regulators. The fund declared losses in the first three quarters of 2018, so this latest report comes as no surprise. Over 2018, the company made six new equity investments worth $21.1 million into the likes of BitGo Holdings, Bakkt Holdings LLC, and Spring Labs. From a trading standpoint, Galaxy Digital has on-boarded a number of counterparties including crypto funds, family offices, and high net worth individuals. In light of the ongoing controversy, they stated they have no exposure to Tether or Bitfinex. In their financial statements, total digital assets held reduced from $323 million in Q3 to $249 million in Q4.  The decrease represents both realized and unrealized loss on digital assets held. Net comprehensive losses of $272.1 million in 2018 came from three components; $101.4 million of realized losses, $75.5 million of unrealized losses, and $88.4 million of operating expenses from companies in which they hold equity. Michael Novogratz, the CEO and principal founder of Galaxy Digital, gave his views on the fund's performance to Cision. "While 2018 was a challenging year for the industry, I am pleased with the ways in which our team navigated difficult market dynamics, and believe we are well positioned to scale our business strategically over time." The bear market may have scared off retail investors, but venture capitalists have been increasing their exposure to blockchain and cryptocurrency companies. The first VC fund to open itself up to the blockchain, Pantera Capital, has arguably made some of the best blockchain investments since 2013. Their portfolio includes the likes of Bitstamp, Brave, Ripple, Civic, and Blockfolio. Furthermore, they also have an ICO fund and a digital assets fund; Pantera Capital pioneered the hybrid investment company model that has both venture funds and hedge funds. Digital Currency Group and Galaxy Digital have also adopted this model. While Digital Currency Group has been successful, Galaxy Digital is yet to turn a profit since its inception in 2017. With a wealth of investment experience, Galaxy Digital certainly has the potential to make great investments and profit tremendously in the future. But, from the investment style we have seen so far, Novogratz seems to be trying to replicate his successful 'global macro' strategy from the equity market in cryptocurrencies. One thing has been made clear, the crypto markets are too dynamic for traditional investment strategies to flourish. In order to be successful, you have to be willing to not just think outside the box, you have to live outside the box. Our Bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4 document

Samsungs Blockchain Keystore which is available on the companys range of Galaxy S10 phones as well as Note 10, has included support for Bitcoin as well as more than 30 other cryptos. The app also supports more than a few DApps as well.A few months ago in March, launched its with the Blockchain Keystore, a wallet with support from several decentralized apps (DApps) along with Ether (ETH) and other Ethereum powered ERC20 tokens as well. Now, the tech giant has added to its native wallet, as well as further support for at least 32 other digital assets.According to reports, the Galaxy S10 wallet app will now automatically generate a Bitcoin (BTC) address along with which was supported from the beginning. There is now additional support for 31 others, allowing individual users to create as many addresses as desired for all the rest.Apart from BTC and ETH, other supported assets include , Pundi Xs token and among others. Unconfirmed reports from a Reddit post, shows support for , , as well as. In addition to these, the Samsung Blockchain Keystore will also support the Klaytn, a digital asset from , the popular Korean messaging platform.These currencies are reportedly available with the S10 range including the S10 5G, S10+, S10, and S10e. The wallet app is also available on the Note10 and Note10+ models as well. At the moment, even though the devices are available pretty much everywhere, these specific blockchain features can only be accessed in the United States, the United Kingdom, South Korea, Germany, Spain, Switzerland, and Canada.The app also boasts of top-notch security. One of the major problems with the crypto industry is the likelihood of a breach which has happened quite a few times even to some of the worlds biggest and supposedly most secure exchanges.A major solution to this is the use of private keys held with the wallet owners and not with the exchanges. This allows owners remain responsible for their funds instead of delegating some of this responsibility to the exchanges themselves. Samsung, therefore, allows users to hold their private key and boasts that the Samsung Blockchain Keystore is a very safe and secure way to hold funds, also promising that the private keys are never saved to a Samsung or external cloud.For DApps, it was previously reported that the mobile app will support at least four. They include Enjin, a blockchain gaming platform; the popular CryptoKitties collectibles game, Cosmee beauty platform and CoinDuck, a blockchain payments service. At the moment, Samsung plans to add 13 more, taking the number of supported DApps up to 17.Among the added DApps is one known as DENT. The application is used for the borderless exchange of mobile data using contacts stored within its address book. The DENT DApp can also easily be funded for purchasing these data packages using fiat via PayPal and also using several supported digital assets.You May Also Like

An SEC filing dated Dec. 4 revealed that Microstrategy purchased another 2,574 Bitcoin for an average price of $19,427. The company holds the most Bitcoin for a publicly-traded company. 

The software firm had made two Bitcoin purchases before this. The first investment of $250 million occurred on Aug. 11, followed by an additional $175 million a month later. 

At the end of September, the company had assets worth $773 million in total, with 54.9% of its Bitcoin holdings. The value of their BTC holdings has appreciated by 194%. 

The latest purchase has increased Microstrategy’s asset in Bitcoin by nearly 60%. 

Microstrategy’s stock (MSTR) has also soared 165% since August when the company first began adding Bitcoin to its balance sheet. 

Micheal Saylor, the CEO of Microstrategy, sees Bitcoin as an ideal hedge against the inflation in cash reserves. Saylor argued that while currency inflation is zero, asset inflation has risen 15%, promoting a disconnect between asset prices, like equities, and actual earnings. 

Microstrategy now holds approximately 40,824 BTC. Its investment is nearly three times more than Galaxy Digital Holdings in second place. 

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(adsbygoogle = window [])google_ad_client: "ca-pub-3565551098915916", HomeCryptocurrenciesNovogratz's Galaxy Digital Crypto Fund Lost $272.7 Million in 2018 Novogratz's Galaxy Digital Crypto Fund Lost $272.7 Million in 2018 (adsbygoogle = window []) (adsbygoogle = window []) Galaxy Digital Holdings, the crypto merchant bank founded by former hedge fund manager Michael Novogratz, lost $97 million in the fourth quarter, according to financials disclosed Monday. The net loss widened from $76.7 million in the third quarter and from about $100,000 a year earlier, according to the filing with Canadian securities regulators. (Last February, New York-based Galaxy bought a Canadian publicly traded company in a reverse takeover.) For all of 2018, its first full year of operation, the company lost $272.7 million. The majority of the red ink in 2018, $101.4 million, came from selling digital assets at a loss. Galaxy also recorded $75.5 million in paper losses on crypto it held that declined in price, $8.5 million in unrealized losses on investments in companies and $88.4 million in operating expenses. At the end of 2018, Galaxy held 9,724 bitcoin ($36.4 million), 92,545 ether ($12.3 million), 2.4 million EOS ($6 million) and 60,227 of monero ($2.8 million).  The firm increased its investment in bitcoin and ether from the beginning of the year when it held 5,902 BTC and 57,000 ETH. Galaxy also used to hold large amounts of Wax ($50.2 million) and BlockV tokens ($17.4 million), which disappeared from the top ranks of the firm's investments at the end of the year. According to the report, Galaxy lost money selling bitcoin ($70.3 million) and ether ($64.4 million), which was partially offset by $54.3 million earned selling some cryptocurrencies short (it's not specified which ones). Bitcoin was the biggest source of losses at the beginning of 2018, while ether caused the most damage during the rest of the year. Interestingly, Galaxy lost as much as $47 million on the depreciation of the Wax token, an asset created to power a platform for trading virtual goods like items in video games. Several other altcoins also lost in price before Galaxy could profitably sell them during 2018: Kin ($10.9 million in losses), BlockV ($17.2 million) and Aion ($8.6 million). Some $5 million was also lost on EOS. A number of companies and investment funds in Galaxy's portfolio declined in value. For example, the Pantera ICO Fund LP shares' depreciation caused the loss of $14.1 million (Galaxy currently has $17.4 million invested in the fund). The firm also took a haircut of $11.3 million on its shares of Canada-based Hut 8 Mining Corp, and $11.1 million on crypto wallet firm Xapo. As of the end of 2018, Galaxy held $41.9 million in the stock of Block.One's, the creator of EOS, plus some $5 million more in Galaxy EOS VC Fund focused on developing the EOS.IO ecosystem. Meanwhile, payments startup Ripple Labs received $23.8 million, including "an indirect investment through a special purpose vehicle," the report says. Galaxy also invested $26 million in mining businesses, including Hut 8 Mining and Bitfury; $7.5 million in custodian and multi-signature wallet provider BitGo; and $5 million in Bakkt, the bitcoin futures exchange yet-to-be-launched by New York Stock Exchange parent ICE. Other investments include Silvergate Capital Corporation, parent of the crypto friendly Silvergate Bank; tokenization startups AlphaPoint and Templum; investment vehicles Cryptology Asset and Pantera Venture Fund; and Mercantile Global Holdings, a Puerto Rico-based entity operating the recently founded San Juan Mercantile Exchange. The firm also provided $3.8 millions of loans for the crypto lending platform BlockFi. Talking about the risks Galaxy may face in the future, the report pays special attention to the concentration of power in the hands of the CEO and major stakeholder Mike Novogratz, who owns more than 71 percent of Galaxy. Among the regulatory and market risks, Galaxy is "highly dependent on Michael Novogratz, exposing shareholders to material and unpredictable 'key man' risk," the document says, adding that the CEO's "interests may be different from those of shareholders," and there is a danger he "could engage in activities outside of GDH LP or could quit GDH LP in favor of other pursuits." No less notable, the report adds: "Mr. Novogratz's public profile makes it more likely that GDH LP will attract material regulatory scrutiny, which would be costly and distracting regardless of whether GDH LP has engaged in any unlawful conduct."

One of the largest U.S. investment banks, Morgan Stanley, will be offering its wealth management clients access to bitcoin funds. Goldman Sachs, JPMorgan Chase, and Bank of America’s wealth management divisions do not currently allow their advisors to offer direct investment in bitcoin funds.

Investment bank Morgan Stanley, with $4 trillion in client assets, has become the “first big U.S. bank to offer its wealth management clients access to bitcoin funds,” CNBC reported Wednesday.

The firm reportedly told its financial advisors in an internal memo that it is launching access to three funds that allow exposure to bitcoin, the publication conveyed, citing people with direct knowledge of the matter. According to the people, clients have been demanding exposure to the cryptocurrency, adding:

Clients can likely make investments as early as next month, after the bank’s financial advisors complete training courses tied to the new offerings.

Two of the bitcoin funds on offer are from Galaxy Digital: the Galaxy Bitcoin Fund LP and the Galaxy Institutional Bitcoin Fund LP. The third is FS NYDIG Select Fund, a joint effort from asset manager FS Investments and New York Digital Investments Group (NYDIG). The latter is the bitcoin investment arm of Stone Ridge Asset Management. Two of the funds have minimum investments of $25,000, but Galaxy Institutional Bitcoin Fund has a $5 million minimum.

The funds are only available to clients of Morgan Stanley’s wealth management division and investments are restricted to 2.5% of the client’s total net worth, the sources revealed. Clients must have at least $2 million in assets held by the firm with “an aggressive risk tolerance” to qualify, whereas investment firms need at least $5 million at the bank.

The wealth management divisions of other major U.S. investment banks — Goldman Sachs, JPMorgan Chase, and Bank of America — do not currently allow their advisors to offer direct investment in bitcoin funds, the news outlet noted.

Galaxy Digital CEO Mike Novogratz and NYDIG both tweeted that they are thrilled “to partner with Morgan Stanley, the first US bank to offer access to bitcoin for their wealth management clients.”

Bitcoiners welcome this move by Morgan Stanley, praising the investment bank for its contribution in making bitcoin more mainstream. Microstrategy CEO Michael Saylor wrote, “Morgan Stanley is the first bank to offer bitcoin, they won’t be the last.” Economist Saifedean Ammous, the author of The Bitcoin Standard, commented: “Today is the day the big banks entered bitcoin.” Morgan Creek Digital partner Anthony Pompliano opined:

Galaxy Digital and NYDIG will both be onboarding millions of people to bitcoin via the largest US brokerage. Morgan Stanley is in the game. Bitcoin is inevitable.

What do you think about Morgan Stanley offering bitcoin funds to clients? Let us know in the comments section below.

Galaxy Digital CEO Mike Novogratz has predicted that as much as a trillion dollars could flow into bitcoin over the next year as wealthy baby boomers get into cryptocurrency. With the example of Morgan Stanley, he says that more banks will start offering bitcoin exposure to their customers.

Michael Novogratz, a longtime bitcoin bull and founder of Galaxy Digital, talked about the future outlook for bitcoin last week in an interview at Reuters Digital Assets Week. He explained that as cryptocurrencies become more mainstream, wealthy baby boomers will be the next generation to get into cryptocurrencies, elaborating:

It could be as much as a trillion dollars comes over the next year from that giant group of wealth.

Following the announcement by Morgan Stanley to offer access to bitcoin funds to its wealthy clients, Novogratz predicted that other major banks and trading platforms will follow suit. This will likely spark the rush from wealthy baby boomers, he opined.

With the new offering, Morgan Stanley will become the first big U.S. bank to offer bitcoin investments to wealth management clients. Two of the three bitcoin funds that will be offered initially are by Galaxy Digital: the Galaxy Bitcoin Fund LP and the Galaxy Institutional Bitcoin Fund LP. Commenting on the move by the major investment bank, Novogratz said:

The money will start coming in early next month.

The Galaxy Digital executive is not the only one expecting a flood of investments from baby boomers. Recently, JMP Securities predicted that about $1.5 trillion could flow into bitcoin from wealthy clients of investment banks. The firm based its projection on a modest portfolio allocation, citing that “Around $30 trillion of assets in the U.S. retail wealth management industry currently do not have direct access to bitcoin.”

As for whether bitcoin is becoming mainstream, Visa CEO Al Kelly recently said that he anticipates the cryptocurrency becoming “extremely mainstream” and his firm is already working to allow bitcoin payments at 70 million stores. Other companies, such as Goldman Sachs, are also seeing huge institutional demand for BTC while Deutsche Bank says the cryptocurrency is too important to ignore.

Baby boomers are those born roughly from the end of the second world war to the mid-1960s. They have been the main beneficiaries of massive stimulus packages that have pumped up asset values since the 2008-9 global financial crisis. A number of them see bitcoin as an asset that can significantly increase in value as well as one that can protect their savings from inflation spurred by massive money printing.

Noting that bitcoin works best as a store of value rather than a currency or a means of payment, Novogratz opined:

If you’re worried that the U.S. is printing too many dollars … you’re going to shift some of your savings into bitcoin.

Do you agree with Mike Novogratz about bitcoin? Let us know in the comments section below.

In a first for a major American bank, Morgan Stanley, one of the most established names in the wealth management sector, is now letting its deep-pocketed clients access three Bitcoin funds, CNBC reports.

The Wall Street behemoth boasts close to $4 billion in assets under management, with its financial advisor headcount reaching 16,000. Two of the three funds supported by Morgan Stanley are owned by Galaxy Digital Capital Management, the affiliate firm of Mike Novogratz' Galaxy Digital. The third one is operated by Stone Ridge's Bitcoin subsidiary, NYDIG.

Accredited investors are required to put at least $25,000 into either the Galaxy Bitcoin Fund or FS NYDIG Select Fund. They are not allowed to invest more than 2.5 percent of their net worth into Bitcoin, which dramatically restricts the number of those who can gain simplified exposure to the cryptocurrency. The minimum investment threshold for Galaxy's institutionally-oriented fund is set at a whopping $5 million.

Morgan Stanley is the first major US bank to offer its clients the direct purchase of shares in funds that allow them to take a position on Bitcoin. 

This was revealed by CNBC, citing an internal memo from the bank to its financial advisers.

In the memo, Morgan Stanley explicitly tells its financial advisers that it will soon launch access to three funds invested in bitcoin, two of which come from Galaxy Digital, Mike Novogratz‘s crypto company, while the third is from FS Investments and NYDIG.

However, for now, the bank will only allow its wealthiest customers access to these funds, i.e. those with at least $2 million in assets on deposit because it considers bitcoin an asset only suitable for people with “an aggressive risk tolerance”. It will also only allow investments in bitcoin up to 2.5% of the total net worth of individual clients.

For example, the Galaxy Bitcoin Fund LP and the FS NYDIG Select Fund require a minimum investment of $25,000, while the Galaxy Institutional Bitcoin Fund LP requires a minimum of $5 million.

Morgan Stanley is a full-scale asset management giant, with $4 trillion in AUM, and this could be a very significant step towards the acceptance of bitcoin as an asset class. According to CNBC, the decision was made by the bank after its own clients requested exposure to bitcoin.

The bank’s clients are likely to be able to start making these types of investments as early as next month after financial advisers complete training courses related to these new offerings.

The famous crypto influencer Anthony Pompliano commented by saying: 

“Bitcoin is inevitable”.