Big Money Is Coming To Bitcoin Says Ex- Wall Street Hedge Fund Manager
Mike Novogratz, a former macro hedge fund manager at Fortress Investment Group says hedge funds and institutional capital flocking into bitcoin in the next 8 months.
A former macro hedge fund manager at Fortress Investment Group has revealed mainstream financial institutions will adopt bitcoin over the next 6 to 8 months. Mike Novogratz was speaking on Monday during at the Reuters Global 2018 Investment Outlook Summit in New York, U.S. Without naming specifics, he said:
"The institutionalization of this space is coming. It's coming pretty quick."
In the last two months, the Chief Officer of Galaxy Investment Partners has consistently made cryptocurrency headlines for predicting a meteoric rise in the price of Bitcoin to $10,000. Part of the reason for this sustained demand is likely to expectations of new money inflows from the institutional capital that has been sitting on the sidelines.
Mike believes the change in tide is due to more mainstream bitcoin products in the market, which lowers the barriers to access.
"When it's that easy, the price of Bitcoin or Ethereum is going to go much higher. And that is a lot closer than people think."
The former Fortress executive has already forked out $100 million out of his own money for a planned $500 million crypto hedge fund.
For mainstream financial institutions accustomed to a different way of conducting business, bitcoin in its pure form seemed highly speculative and opaque. Novogratz says this has kept out hedge fund capital from dipping a toe into exotic cryptocurrencies. But with bitcoin derivatives coming into the market, institutional capital will soon get a taste of bitcoin.
CME Group's Terry Duffy, chairman, and CEO of the derivatives exchange said yesterday bitcoin future products would be listed as early as the second week of December. Already, the CFTC, US Commodity regulator, has approved a digital currency firm Ledger X to act as a clearing agent for bitcoin derivatives.
With the price of bitcoin up nearly 580% this year alone, Investment banks like Goldman Sachs who have hinted at trading bitcoin may finally get exposure to crypto assets.