According to Mike Novogratz, founder of crypto firm Galaxy Digital, wealthy baby boomers will be the next generation to invest in cryptocurrencies as they become more popular, potentially adding billions of dollars to the rallying market.
Mike Novogratz is a long-time supporter of crypto and the founder of Galaxy Digital. According to him, with investment firms like Morgan Stanley investing in crypto, we will see more wealthy baby boomers get acquainted with digital currencies during the next year.
Who do we call baby boomers?
They are a group of people who grew up anywhere between the end of WWII and the mid-1960s. Since the global financial crisis of 2008-9, they have been the primary beneficiaries of large stimulus packages that have inflated asset values.
Morgan Stanley is going to become the first major U.S. bank to sell bitcoin investments to wealth management clients with the latest offering. Galaxy Digital will initially sell two of the three bitcoin funds: the Galaxy Bitcoin Fund LP and the Galaxy Institutional Bitcoin Fund LP.
$1 Trillion Dollars spurge on Crypto
During an interview with Reuters, Novogratz says:
“It could be as much as a trillion dollars comes over the next year from that giant group of wealth.”– Mike Novogratz
The CEO of Galaxy Digital isn’t the only one anticipating a surge in investments from baby boomers. JMP Securities recently projected that wealthy investment bank clients will pour $1.5 trillion into bitcoin.
“Around $30 trillion of assets in the U.S. retail wealth management industry currently do not have direct access to bitcoin,” according to the company, which based its forecast on a modest portfolio allocation.
You could say that crypto is going mainstream. Recently, Visa CEO Al Kelly said that crypto will become “highly mainstream,” and that his company is already working to facilitate bitcoin payments at 70 million locations. Other firms, such as Goldman Sachs, are seeing significant institutional demand for Bitcoin. Deutsche Bank also says “cryptocurrency is too critical to ignore.”