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Galaxy Digital’s bitcoin funds raised $58.7 million in their first year,
mostly from wealthy investors eager to benefit from the surging cryptocurrency.
As reported in two form D filings, Galaxy Institutional Bitcoin Fund LP raised $55.1 million while its smaller brother, Galaxy Bitcoin Fund LP raised $3.6 million. Both funds launched last November when Mike Novogratz first trained his crypto investments firm’s sights on the bitcoin (BTC, -1.78%) fund space.
The institutional fund in particular appears to capture high-rollers’ spiking interest in bitcoin. With a minimum investment of $250,000, the $55 million fund attracted 33 investors for an average allocation of $1.6 million.
That’s a little less than half of what Galaxy Bitcoin Fund LP managed to raise overall. There, 56 investors pitched in at least $25,000 each for the full $3.6 million raise.
Funds have long appealed to investors who seek exposure to bitcoin’s price without having to deal with custody, trade or execution issues themselves. Pantera Capital launched one of the first such vehicles in 2013; it now has north of $135 million in sales.
A third entity, Galaxy Institutional Bitcoin Fund, Ltd, reported raising $45 million from 13 investors Wednesday. It was not immediately clear if that fund, which had a $100,000 minimum investment, was directly related to Institutional LP.