Galaxy Digital Set To Launch Ethereum Funds
Ethereum is gradually beginning to takes its place up there, not in the same vein as Bitcoin. Still, the token is doing its best to force competition with the largest cryptocurrency in Market capitalization and price value. The Ethereum token had been predicted by some analysts this month to end the year on at least $10,000, a figure which Bitcoin might never drop to in its worst performance, but will represent a huge success for the leading altcoin. Fortunately for Ethereunm, in a new report by crypto investment firm Galaxy Digital, the capital firm has announced that they are launching new investment funds for the network’s native token Ether.
The investment funds will attend to the need of institutional investors
The three new Ethereum focused investment funds that are set to launch soon are tailored to satisfy institutional investors’ needs. They are divided into an onshore investment, requiring a minimum of $250,000 to invest, while the offshore segment will allow institutional investors to commit a minimum of $100,000. Galaxy Digital aims to help investors without knowledge of cryptocurrency trade Ethereum.
The new investment funds are also set to be built on DeFi protocols powered by the Ethereum network. The Ethereum network’s growth can not be undermined as the network is now single-handedly running the DeFi space and has now become the go-to place for developers to develop blockchain-tailored Decentralized Applications(DApps).
Galaxy is leveraging the DeFi space’s success, currently worth more than $1 billion, and its applications are generating more than $100 million in revenue annually. The over-reliance on the DeFi space on Ethereum is why the new Galaxy Digital cryptocurrency fund is built upon the network’s token, Ether.
What this means for Galaxy and Ethereum
Ethereum is the second-largest cryptocurrency by Market capitalization. With Galaxy helping the network now gain many more institutional investors’ attention, the network’s value is set to increase. On the other hand, for Galaxy Digital, Mike Novogratz founded the crypto investment firm in 2018. their current market capitalization of about $800 million is also set to receive a boost. Galaxy Digital will follow Grayscale’s footsteps, another crypto investment, which has boosted its market capitalization to about $20 billion by creating similar products.
Grayscale has now been able to boost its fortunes by creating cryptocurrency tailored products for Bitcoin, Ethereum, Stellar, and a few other digital assets. The new investment fund will benefit both firms and should also propel the price of ETH, which has outperformed Bitcoin since the beginning of 2021 compared to each other.
However, Mike Novogratz will be the most expectant of all. The businessman and tech guru will be hoping that Galaxy’s successes when they launched a Bitcoin fund earlier will replicate itself in the new Ethereum investment fund launch.