Former CIO starting a $500 million Cryptocurrency Hedge Fund

0
41
bitcoin stocks

Mike Novogratz, the former $72 billion dollar money manager at Fortress, is not passing up the immense opportunity for wealth the cryptocurrency market is offering. It has been said that Novogratz is seeking a comeback after failing to deliver returns to investors at Fortress. According to Bloomberg news, Novogrratz is in the process of raising $500 million for a cryptocurrency hedge fund.

During an interview with Bloomberg TV, Novogratz declined to comment about the crypto-fund but he admitted that there is ample opportunity to be successful cryptocurrency market.

Novogratz commented, “This is going to be the largest bubble of our lifetimes,” He also stated, “Prices are going to get way ahead of where they should be. You can make a whole lot of money on the way up, and we plan on it.”
Traditional hedge funds are also paying attention.

Steve Nadel, an attorney for a hedge fund stated, “We have seen managers invest in the actual currencies and/or in the ICOs, and soon there will be derivatives as well,” in an email to Business Insider. He also included, “Cryptocurrencies have garnered a fair amount of interest in the investment management space, primarily because of the returns they have recently shown”.

Novogratz actively trades bitcoin, telling Bloomberg, “I sold at $5,000 or $4,980. Then three weeks later I’m trying to buy it in the low $3,000s. If you’re good at that and you’re a trading junkie, it’s a lot of fun.”

Novogratz would not be the first to start a cryptocurrency fund but he would be starting the largest one yet.

“Like wild mushrooms, crypto-hedge funds have been taking root in the volatile and unregulated soil of the crypto economy,” Autonomous NEXT, a financial technology analytics firm, posted on their website.

It is no wonder that rise in digital currencies has fascinated investors with bitcoin up almost 570{7b1a8a58d3ffe2d8e535e80e794d8bc0bf06a3ecc0c2050b83ca37784c6fddca} and ether up nearly 2,100{7b1a8a58d3ffe2d8e535e80e794d8bc0bf06a3ecc0c2050b83ca37784c6fddca} both since 2016.

LEAVE A REPLY

Please enter your comment!
Please enter your name here