Mike Novogratz, the former Fortress Investment and Goldman Sachs executive who has since become a mainstream crypto advocate, has stated that he doesn’t understand why large macro funds, such as Ray Dalio’s Bridgewater Associates, don’t have a 1% position in Bitcoin.

Over the weekend, the price movement of major cryptocurrencies has slowed down following a break up from a falling wedge formation last Friday. In the run-up to the breakout, cryptocurrencies like EOS and Litecoin demonstrated gains in the range of 15 to 30% against the US dollar. At this point in time, it looks more likely to be a bit of short-term relief for the bulls (and far from any sort of confirmed reversal in price).

Don’t understand why all the big macro funds out there don’t have a 1 percent position in $btc. Just seems logical even if your prone to be a skeptic. @RayDalio #goldproxy #animalspirits #greatriskreward — Michael Novogratz (@novogratz) February 9, 2019

Problems are solvable with time

In a follow-up tweet issued on Saturday, the chief executive of Galaxy Digital was asked why large macro funds have been slow to access this historically uncorrelated asset class.

He responded by saying: “They just don’t want to deal with answering all the questions from investors, maybe having to update docs, and finding a custody solution they trust. All solvable in time.”

Mr Novogratz then defended the claim that Bitcoin was still too small in market cap for major players to get involved in today. He made the case that “many funds have a position in stocks with far smaller market caps than $63bn.”

Not the first claim of a new bull market

At the start of the year, Novogratz put his money where his mouth is by investing another $4.8 million into his cryptocurrency venture fund, Galaxy Digital Holdings. At the time, the 54-year-old predicted that an influx of institutional money was coming, spurred by the launch of Nasdaq’s Bitcoin futures.

In November last year, he also made the claim that financial institutions will move from investing in cryptocurrency funds to cryptocurrencies proper during the first quarter of 2019. He went on to tell the Financial Times that “you’ll see that flip next year. That’s when prices will start moving again.”