Galaxy Digital plans to launch the Ethereum Fund in February, founder: ETH target price is $2,600

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2021-01-26 17:05 (UTC+8)

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2021 will be the year of Ethereum, and as a growth asset, investing in Ethereum is like investing in a basket of early-stage high-growth tech stocks.

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2021 will be the year of Ethereum, and as a growth asset, investing in Ethereum is like investing in a basket of early-stage high-growth tech stocks.

Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc)Babbitt Information (ID: bitcoin8btc)

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Babbitt Information (ID: bitcoin8btc)
, Author: Will Gottsegen, Frank Chaparro, Compiler: Yunjin, published with authorization.
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Cryptocurrency investment firm Galaxy Digital is launching an Ethereum fund.

The Galaxy Ethereum Fund, along with two other institutional-focused funds, will provide exposure to Ethereum (ETH), the native token of the Ethereum network.

Galaxy Digital manages $815 million in assets.

Cryptocurrency investment firm Galaxy Digital is planning to raise new funds for ETH.

According to documents shared with clients (reviewed by The Block), the firm plans to officially launch the Galaxy Ethereum Fund, a private equity fund designed to provide institutional-level exposure to Ethereum, in mid-February. Direct investment in Ethereum will be priced according to the Bloomberg Galaxy Ethereum Index (an index benchmark jointly launched by Bloomberg and Galaxy Digital to measure cryptocurrency performance and investment risk).

The fund is open to accredited investors with a minimum investment of $25,000. Galaxy will charge a 1% management fee on investments over $100,000 and a 1.25% management fee on investments under $100,000.

Launched alongside the fund, there are two other ETH-focused funds targeting domestic and foreign institutional investors. The minimum investment in onshore institutional funds is $250,000, while the minimum investment in offshore funds is $100,000.

These new funds provide investors who do not want to hold or trade ETH themselves, the opportunity to invest in ETH. The document also compared and analyzed the differences between investing in the fund and direct investment transactions, such as the openness and transparency of the price, the custody of the assets by Gemini, the audit by Deloitte, and the professional staff responsible for the operation.

As for why you should invest in Ethereum, Galaxy Digital pointed out that 2021 will be the year of Ethereum. As a growth asset, investing in Ethereum is like investing in a basket of early high-growth technology stocks.

The document also mentions that DeFi protocols are a potential growth point for the Ethereum network. The operation of many DeFi projects relies on the native token ETH of the Ethereum network, and a benefit to the Ethereum network is a benefit to ETH. Currently, there are six projects with a market cap of more than $1 billion and annual revenues of up to $100 million. Galaxy Digital believes that Ethereum is an emerging foundation for programming and digital value interaction that will be ubiquitous in the future.

Galaxy Digital is a diversified merchant bank focused on the digital assets and blockchain space, founded by Michael Novogratz (billionaire, cryptocurrency proponent and evangelist). The person in charge of the company has been investing in digital assets since 2013. In 2018, Galaxy Digital Capital Management ("GDCM"), a customer asset management department, was established to invest on behalf of customers. The current asset management scale of GDCM is 815 million US dollars.