Mike Novogratz Buys $15-$20 Million Of Bitcoin (BTC)

Galaxy Investment Partners Predicts Institutionalization Is Coming Soon

Yesterday we discussed how Bitcoin (BTC) experienced a dip on Sunday and was poised for another rally. While some may have panicked, the smart money was buying the dip amid growing BTC volume the barrier to entry for owning Bitcoin is weakening.

Speaking in New York at the Reuters Global 2018 Investment Outlook Summit, Mike Novogratz stated “The institutionalization of this space is coming. It’s coming pretty quick.” Novogratz, who is currently the CEO of Galaxy Investment Partners, also mentioned that during the Bitcoin dip this weekend, he purchased $15-$20 Million of Bitcoin, and that he expects to major financial firms to start offering Bitcoin or similar products as an investment vehicle soon.

Let’s be honest though, when major financial firms start to offer Bitcoin or other cryptocurrencies as an investment vehicle, they will come with a premium. One of the perks of Bitcoin is the low transactions fees, something that the community is working on lowering even further, and major financial firms would likely pocket that money and then some.

For example, look at Bitcoin Investment Trust (OTCMKTS:GBTC). One share of the company is 0.09211978 Bitcoin, which at the time of this publication is approximately a 41% premium given that BGTC is trading at $854 and Bitcoin is trading at $6,575. Stocks might be easier to trade, but in this instance it’s a lack of education. If someone was to spend an hour of their time reading up how to buy Bitcoin, they’d find that they could be buying and trading Bitcoin (fee free) by using the Coinbase owned GDAX.

Written by onlytherichest


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