A former principal at Fortress Investment Group is reportedly moving to establish a $500 million hedge fund focused on cryptocurrency and blockchain.
, citing a source with knowledge of the plans, reports that Mike Novogratz is investing $150 million of his own, with an additional $350 million expected to be raised from outside sources by the end of 2017. Novogratz opted not to confirm or deny his plans when asked directly, according to the outlet.
If true, the initiative would represent the billionaire hedge funder's most aggressive move in the space to date. Novogratz previously made headlines earlier this year when he revealed that 10% of his net worth has been invested in bitcoin and ethereum. Speaking with Bloomberg, Novograts said that his stake in the market has since grown.
Even if he isn't setting aside funds to back a cryptocurrency-specific hedge fund, Novogratz made it clear that he intends to take part in what he called "the largest bubble of our lifetimes."
He told Bloomberg:
Image via Bloomberg/YouTube
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.