Ex-Fortress trader and Goldman Sachs alumni, Mike Novogratz, is becoming one of the biggest forces in creating a bridge between traditional financial institutions and the crypto space. He recently spoke with CNN about where he thinks cryptos are going, and why he believes investors should have exposure to the emerging digital asset class.
Like many in the crypto community, Mike Novogratz feels that crypto and Blockchain development is just getting started. According to Mr. Novogratz, investors should have at least 1-2% of their assets in some form of cryptocurrency, and he even went on to say that avoiding cryptos at this point is “almost irresponsible.”
Unlike many on Wall St., Mike Novogratz has been very positive on cryptos for years. Now he is taking his involvement in the sector to the next level. Over the past few months, he worked to create a new valuation index and raised capital to take a crypto-focused merchant bank public.
The idea that cryptocurrencies are worth hundreds of billions of dollars is a new concept. 2017’s rapid appreciation in crypto prices probably cemented the idea of cryptocurrencies in the public mind, but valuing the sector as a whole has been problematic.
To help solve this dilemma, Mike Novogratz teamed up with Bloomberg LP to create a benchmark pricing index for the crypto space. Called the “Bloomberg Galaxy Crypto Index (BGCI),” it will use geometric weighting to create an overall price level for cryptos. The cryptocurrencies that will be included are Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Dash, Monero, Ethereum Classic, and Zcash.
Mr. Novogratz said that “The Bloomberg Galaxy Crypto Index brings unprecedented transparency to the crypto markets. We are excited to help drive the decentralized revolution forward through the creation of BGCI.”
The Goldman Sachs of Crypto!
“Galaxy” in the BCGI moniker refers to Galaxy Digital Capital (GDC). Mike Novogratz is the founder and CEO of GDC, which has raised around USD 250 million. The company is reportedly working on going public in Canada, via a reverse merger that would see their shares listed on the TSX-V.
GDC is said to be working towards being the world’s first crypto merchant bank, though it could be argued that Xapo beat them to the punch.
Regardless of that, Mike Novogratz would bring insider knowledge to the crypto sector, and according to the CNN interview, due to his contacts at major financial institutions like Deutsche Bank and the NYSE, 2018 will see increased interest from the mainstream financial sector.