According to investor documents, Galaxy Digital will launch ETH-based funds next month. The company positions ETH as an asset with high growth potential.
Galaxy Digital is betting that 2021 will be the year of growth in the popularity of ETH among institutional investors. According to a document sent out to Galaxy Digital customers, the company will launch ETH-focused products in mid-February. The Galaxy Ethereum Fund will provide the company’s customers with access to ETH through a mechanism structured like a security.
The fund’s pricing will be based on the Bloomberg Galaxy Ethereum Index, and its assets will be held by Gemini. Galaxy charges a management fee of 1% for investments exceeding $100,000 and 1.25% for investments of less than that amount. The minimum investment threshold for the fund is $25,000.
In addition to the Galaxy Ethereum Fund, the company will offer two organization-focused funds for offshore and non-offshore investors. For both of these funds, the management fee is 0.75% per annum for Class A shares and 1% for Class B shares.
The timing of the funds ‘ launch is remarkable, given that CME Group plans to launch Ethereum futures in February 2021. Galaxy funds and CME’s future futures product highlight the growing interest in ETH from institutional investors. According to Galaxy forecasts, ETH offers the opportunity for rapid investment growth.
“We consider ETH to be a growth asset. Investing in ETH is similar to investing in a basket of fast-growing technology stocks at an early stage, which gives investors the opportunity to benefit from the rapid growth of smart contracts and next-generation decentralized applications, ” according to the document.
Galaxy noted the importance of the decentralized finance (DeFi) market: “Six applications of the decentralized finance industry are now worth more than $1 billion and generate up to $100 million in annual revenue.”
Earlier this month, Galaxy Digital announced
about the launch of financial services for miners and its own mining, which was prepared since the fall of last year.