$32 Million Ethereum Funds pulled in by Novogratz’s Galaxy Digital

$32 Million Ethereum Funds pulled in by Novogratz's Galaxy Digital

The United States Securities and Exchange Commission has identified that based on recent filings made by made by  Galaxy Digital, two Ethereum funds debuted by them have received $32.1 million in investment.

Mike Novogratz , a recognized ‘Bitcoin Bull, is the CEO of the Cryptocurrency asset management known as Galaxy Digital. In 2019, a akin Bitcoin funds was produced for institutional and individuals.

From two investors, the Galaxy Institutional Ethereum Fund, LP registered in the Cayman Islands was reported by Coin desk, to gain $10,100,000. Also the same report was gotten from Galaxy Digital from the company registered in Delaware, of which $22, 031, 077 was gotten from three investors.

Flowing from the above, the reason for the above stated funds, is to create a free flow of investment by businesses in Ethereum, without buying any. Also, the aforementioned will cause Galaxy Digital to relieve the investors of the risk of handling the private keys, which is designed in such a way it requires the US-based exchange to take charge of them, while Investors will only be at the risk of the price crashing.

Furthermore, for shouldering these risk, Galaxy Digital takes a one percent fee. It is pertinent to add at this point, that Grayscale Bitcoin, Trust and Grayscale Ethereum have had measurable victory with such an akin model like that the Galaxy digital.

Also, of all the Bitcoin in circulation, Grayscale is the owner three percent, and 2.7% of all Ethereum

Aside from creating a competitive market of crypotocurrencies, with the likes of Grayscale and other funds the main reason why Galaxy Digital raise those investment funds is to utilize the increasing appeal of decentralized finance protocol, which permits individuals to swap assets, lend and borrow without the use of banks.

Also, it is germane to add that most of Defi protocols are premised on Ethereum, Blockchain and which helps to strengthen the feasibility of the network. Also, fees are paid with ETH tokens.

Currently, Ethereum price has risen to 63% since this year and which is estimated at $1540.

 

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