Investors should cushion their investment portfolio with some Bitcoin. Those are sentiments shared by ex-hedge fund manager Mike Novogratz. The renowned bitcoin investor believes cryptocurrency are poised to generate significant value going forward, while offering a way to diversify portfolios.
The sentiments come at a time when Bitcoin is flying high amid a surge in institutional interest. A rally past the $19,000 level in recent weeks has coincided with an uptick in mainstream adoption as more people come to terms with its long term prospects.
As the head of crypto investment firm Galaxy Digital, Novogratz is believed to have made more than $200 million from crypto investing. Buoyed by the returns, the crypto investor is urging investors to devote at least 5% of their worth to crypto.
Allocating as much as 5% to crypto investments is grounded on leading cryptocurrency stability such as Bitcoin. While volatility has always been a concern with cryptocurrencies, Novogratz believes it is only a matter of time before it subsides, going by the accelerated mainstream adoption.
With a net worth of more than $700 million, Novogratz is said to have 50% of his portfolio in cryptocurrencies. In addition to being bullish on Bitcoin, the crypto investor also believes in Ethereum’s long term prospects as the second-largest cryptocurrency.
Bitwise Crypto Fund
Gaining access to cryptocurrency investment opportunities is no longer a problem. A number of firms and cryptocurrency exchanges are increasingly providing ways for institutional investors to venture into the sector. Asset Management firm Bitwise is the latest to launch a crypto index targeting institutional investors.
The firm has launched the crypto index fund on professional trading desks such as Fidelity and TD Ameritrade. Bitwise 10 Crypto index is the new crypto fund whose shares will be traded on traditional brokerage accounts. Coinbase Custody Trust Company is to maintain assets in custody.
The fund will track the Bitwise 10 Large Cap Crypto Index, a weighted crypto index of the ten largest cryptocurrencies. The fund is ideal for investors who wish to gain access to Bitcoin, which amounts to more than 70% of the fund, and Ethereum at more than 10%
Bitwise 10 Large Cap Crypto index seeks to provide investors exposure to cryptocurrencies without trying to pick winners. Likewise, it is an ideal crypto fund for financial advisors eager for a safe and easy way to allocate to clients’ crypto.
Cardano DeFi Ambitions
Separately, the first DeFi platform on Cardano Blockchain is poised to go live. The IOH K development has confirmed the launch of Project Catalyst. The community lead funding system seeks to promote the development of innovative solutions on Cardano.
Decentralized lending app Liqwid becomes the first selection to benefit from Project Catalyst’s initial funding round of $250,000 AD tokens. Cardano developers are looking to build a unique community-driven fund for promoting social research experiments to develop decentralized governance systems on Cardano.
The developers also seek to position Cardano to better compete against Ethereum in providing developers a faster and cheaper platform for developing decentralized finance products.