Billionaire Mike Novogratz is among the growing pool of influential investors who think cryptocurrencies are here to stay. That’s why his fund, Galaxy Digital Capital Management, is teaming up with Bloomberg to launch a cryptocurrency index. It is the first of its kind totracks the performance of the largest digital assets, including bitcoin and Ethereum.
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As cryptocurrencies continue to become more mainstream, Novogratz is betting that more big companies and institutions will begin to get involved in the somewhat controversial space.
“I keep saying the herd is coming,” Novogratz told FOX Business’ Maria Bartiromo during an interview on Friday. "I was at the New York Stock Exchange the other day, and I’d be shocked if they don’t do something really exciting in the next three to 12 months.”
Some little-known crypto exchanges, he said, are making $300 million within a three-month period -- and big legacy institutions aren’t going to let that slide for long.
The Bloomberg Galaxy Capital index measures the index of 10 cryptocurrencies, with Ethereum and bitcoin weighted the most at 30% each. The index constituents are diversified across different categories of digital assets, including stores of value, mediums of exchange, smart contract protocols and privacy assets.
While bitcoin might not replace the dollar or the euro anytime soon, Novogratz predicted it could eventually take the place of gold.
“In every single industry, there’s going to be big, big changes coming,” Novogratz said. “It’s not saying the legacy companies are going to lose. They’re going to fight back.”
Other billionaires don’t share Novogratz’s view. Earlier this week, while speaking to FOX Business’ Liz Claman, Warren Buffett called bitcoin “rat poison” while his business partner Charlie Munger likened it to trading turds.