The former Fortress Investment Group manager Mike Novogratz announced a cryptocurrency hedge fund and called Bitcoin (EXANTE: Bitcoin) “the biggest bubble ever”, Bloomberg reports.
“This is going to be the largest bubble of our lifetimes. Prices are going to get way ahead of where they should be. You can make a whole lot of money on the way up, and we plan on it,” Novogratz said in an interview.
Novogratz is reportedly launching a new $500 million hedge fund, dubbed Galaxy Digital Assets Fund, to invest in cryptocurrencies, initial coin offerings (ICOs), and related companies.
According to sources cited by Bloomberg, will put up $150 million of his own money to go with the $350 million he plans to raise from other deep-pocketed investors, which would make for the biggest fund of its kind.
Last week, the founder of the world's largest hedge fund Bridgewater Associates Ray Dalio, said in an interview with CNBC he believes there's a bubble in the Bitcoin market.
Dalio appeared on CNBC's "Squawk Box" and compared Bitcoin to gold unfavorably, saying that he doesn’t think the cryptocurrency is "an effective storehold of wealth.”
Earlier this month the chief executive of JPMorgan Chase & Co (NYSE: JPM) Jamie Dimon said that Bitcoin was 'a fraud' and it would blow up.
Speaking at a bank investor conference in New York, Dimon added: “The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.”