Novogratz Launches Two New Bitcoin Funds Targeting 'Wealth of America'

Michael Novogratz's crypto merchant bank Galaxy Digital is launching two Bitcoin funds, targeting people between the ages of 50 and 80.

The new funds aim to bring "The wealth of America," or people who may have largely remained out of crypto investing, to cryptocurrency markets, Novogratz told Bloomberg Nov. 19.According to Bloomberg, the funds will offer third-party custody from major crypto consortium Bakkt and Fidelity Digital Assets, the digital asset arm of American investment management company Fidelity Investments.

Galaxy Bitcoin Fund and Galaxy Institutional Bitcoin FundThe two new Bitcoin funds - Galaxy Bitcoin Fund and Galaxy Institutional Bitcoin Fund - have reportedly been established with Galaxy's own money and some participation from existing investors, according to the report.

The Galaxy Bitcoin Fund will require a $25,000 minimum investment, and investors will be able to withdraw their funds on a quarterly basis.

Galaxy Institutional Bitcoin Fund has weekly liquidity and a higher initial threshold, the report notes.

Both funds will reportedly charge lower fees than major Bitcoin funds such as the Grayscale Bitcoin Trust.

The share of American Bitcoin investors over 50 years old reportedly accounts for 3%.Novogratz is ever the bullNovogratz, a 54-year-old billionaire and known Bitcoin bull, claimed that there are probably 20 billionaires he could name that made their money outside of crypto and are in crypto now.

He added that the new Bitcoin funds could attract investors who are now buying gold.

Novogratz said he expects that traditional financial services companies will let users invest in Bitcoin in the next 12 months.

Earlier today, major Bitcoin fund Grayscale Bitcoin Trust filed Form 10 with the United States Securities and Exchange Commission to become the first crypto fund to report to the regulator.