As the cryptocurrency sector is mainly attracted by investors between the ages of 25 and 35, Mike Novogratz has the goal of catching an older demographic with his two new Bitcoin funds.
In an interview with Bloomberg, the CEO of Galaxy Digital stated that he would be launching two new Bitcoin funds with the goal to ‘bring the wealth of America.’ The two funds will target people between the ages of 50 and 80, as they remain to represent the age group that does not invest in cryptocurrencies.
The majority of people who share their interest in cryptocurrencies tend to be between 25 and 35. Targeting a demographic which represents 1% of the wealthiest people in the United States, controlling up to 40% of all assets, CEO Michael Novogratz would bring both adoption and institutional-scale investors. Furthermore, Galaxy Digital has the goal of providing lower fees compared to their counterparts, such as Grayscale Bitcoin Trust.
According to Steve Kurz, the head of asset management at Galaxy Digital, ‘the existing landscape for accessing Bitcoin is incomplete.’ He added that the company will seek to provide new and secure service providers, simple access to Bitcoin, and low fees. ‘We wanted to create something that could plug into the existing infrastructure’ added Kurz.
The current company policy for the Galaxy Bitcoin Fund requires a minimum investment of $25,000 and funds can only be withdrawn on a quarterly basis. Commenting on the state of traditional financial institutions, Novogratz stated that he expects that they make the decision to allow clients to invest in Bitcoin during the next 12 months. Moreover, the same investors who buy gold might be interested in Bitcoin funds, according to Novogratz.
Being bullish on the cryptocurrency market, the CEO of Galaxy Digital said that he knows at least 20 billionaires who created their wealth in the traditional stock market and are currently a part of the cryptocurrency market. Whether or not Novogratz’s two new funds will attract the attention of the older demographic remains a question, however, a massive price surge will eventually catch both media attention and new investors.