Galaxy Digital to launch three Ethereum funds for institutional investors

Galaxy Digital, Mike Novogratz’s cryptocurrency bank, will launch three Ethereum-based funds in February, according to a letter the company sent to clients.

The funds are the institutional-focused Galaxy Ethereum Fund and two funds for retail investors. Asset custody will be provided by the exchange’s Gemini custody arm.

The Galaxy Ethereum Fund will give accredited investors access to the second-largest cryptocurrency by market capitalization. Asset value will be based on the Bloomberg Galaxy Ethereum index.

For management, the company will charge 1% on investments of $100,000 or more and 1.25% for smaller investments. The entry threshold will be $25,000.

In the two other funds, the fee will be 0.75% for Class A shares and 1% for Class B shares.

GFM Galaxy Ethereum Fund One Pager January 2021 by ForkLog on Scribd

Galaxy Digital regards Ethereum as an asset with high growth potential. Earlier, Mike Novogratz suggested that the cryptocurrency would rise to $2,600.

I had lunch with @ethereumJoseph today. Always makes me want to buy more $eth. Nice start to the week. Chart targets 2600.

— Mike Novogratz (@novogratz) January 25, 2021

The launch of Galaxy Digital funds coincides with the start of Ethereum futures trading on the Chicago Mercantile Exchange (CME).

In November 2020, the company announced the raising of $58.7 million in Galaxy Institutional Bitcoin Fund LP and Galaxy Bitcoin Fund LP.

In the same month, Galaxy Digital announced the launch of a Bitcoin fund in Canada.

In January 2021, the company opened Galaxy Digital Mining, a unit focused on mining the first cryptocurrency.

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