In short
Mike Novogratz declared the “age of hypothesis” in crypto is over, shifting to real-world asset tokenization.
Galaxy is launching a $100 million hedge fund with 30% crypto publicity, 70% in monetary providers shares.
An October 2025 flash crash wiped $19 billion in derivatives, leaving an enduring influence on market narratives.
The “age of hypothesis” that captivated crypto merchants is ending, Galaxy CEO Mike Novogratz instructed CNBC in an interview Tuesday.
As an alternative, he instructed the information outlet the market is “going to be transposed or changed by us utilizing these similar rails, these crypto rails, to convey banking [and] monetary providers to the entire world. And so, it’s going to be real-world property with a lot decrease returns.”
Novogratz stated the current shift in crypto market dynamics is a mirrored image of change within the broader finance sector. He in contrast the November 2022 drawdown that adopted the chapter of crypto trade FTX to the October 2025 flash crash that worn out $19 billion value of crypto derivatives.
Though there wasn’t one massive occasion (just like the FTX wipeout) to set off the October Bitcoin crash, it nonetheless left a mark.
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“Crypto is all about narratives, it’s about tales,” he stated. “These tales take some time to construct and also you’re pulling folks in… so while you wipe out a variety of these folks, Humpty Dumpty doesn’t get put again collectively instantly.”
However that does not imply he is misplaced his style for crypto markets.
Galaxy simply launched a $100 million crypto hedge fund aimed toward balancing crypto publicity with equities. The fund is about to launch earlier than the top of March.
It can make investments as much as 30% of its property in crypto tokens, and the rest in monetary providers shares that Galaxy believes will likely be affected by modifications in digital asset applied sciences and legal guidelines, in keeping with a Monetary Occasions report.
Novogratz additionally credited the rising curiosity in tokenization with driving a shift in crypto market dynamics. Tokenization is the hassle to maneuver off-chain property, like shares and bonds, onto the blockchain utilizing tokens.
However, he added, tokenized shares could have a “a distinct return profile” in comparison with the beneficial properties that crypto merchants are used to chasing.
The value of Bitcoin has fallen greater than 47% from its October all-time excessive mark above $126,000 to a current value of $66,551, and fell close to the $60,000 mark final week. Bitcoin is down 10% over the past week, with Ethereum matching that current decline and prime altcoins like XRP and Solana marking even sharper losses throughout the identical span.
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