The CEO and founder of the cryptocurrency fund Galaxy Digital, Mike Novogratz has recently gone onto TV to talk about the ongoing developments in the crypto space. Novogratz went on television to do an interview with Bloomberg recently to explain why he believes the first two quarters of next year will be the time for Bitcoin to thrive. The Galaxy Digital CEO is well known for being pro-Bitcoin and has previously declared the bottom of the cryptocurrency market whilst being consistent on being bullish for the digital currency. Novogratz’s appearance on Bloomberg highlighted the latest news that one of the biggest financial service providers in the world, Fidelity Investments will be releasing a digital currency-related custody service. The firm is a manager to over $7 trillion in customer funds and became the biggest financial provider to officially announce a crypto custody solution. This all comes to Mike as a very positive thing. As Novogratz argues, financial firms all over the world try to decide if cryptocurrency is a safe asset class to trade in and custody brings them a step closer to joining the crypto movement.
“We’ve been saying for a long time that one of the things that will get institutional investors involved in crypto is custody solutions...And they’re coming out with a world-class custody solution aimed at institutions...that’s just another check.”
“Novogratz also argued that institutions still don’t completely understand cryptocurrencies. Cryptocurrencies are bearer instruments, meaning that users personally hold the assets, and institutions are not used to this. Most of the time, a separate, trusted entity holds assets for investors. Quality custody solutions such as Fidelity’s means that institutions won’t have to worry about losing their cryptocurrencies due to improper key management.”
This is great news for Novogratz, he made it clear that the price might take a while to catch up to the news though. Fidelity’s custody product won’t be up and running until the first quarter of next year and even then the investors might not be pouring in. They will most likely want to see Fidelity build a track record as an initial step and as their custody team gets more experience, more funds will come into invest. What are our thoughts? Do you think that 2019 is Bitcoin’s year? Let us know down in the comments below?