A stand of the BitClave search engine at Blockchain Life 2017, a conference on bitcoin, blockchain, and cryptocurrency, in St. Petersburg, Russia, September 26, 2017.

Investing giant Mike Novogratz may soon join the rush of new digital asset funds as the largest of them all.

The head of Galaxy Investment Partners and former macro hedge fund manager at Fortress Investment is launching a $500 million fund to invest in digital assets like bitcoin, Bloomberg reported Tuesday, citing a person familiar with the matter.

Novogratz told CNBC he can't comment on the news due to regulations from the U.S. Securities and Exchange Commission.

When it launches, Novogratz's fund will be by far the largest in a growing world of funds investing in digital products like bitcoin, ethereum and initial coin offerings. Financial research firm Autonomous Next estimated this summer that about 70 such "crytpo-funds" now exist.

"The pace is frantic right now," said Brian Kelly, a CNBC contributor and head of BKCM, which officially launched a digital assets strategy in July. "This is a brand new asset class for investors and this is just beginning."

Kelly estimated the cryptofunds have raised a total of $1 billion to $2 billion so far. His own fund has less than $50 million in assets under management and is up more than 2,090 percent since it began tracking returns in March, Kelly said.

Major draws for investors into highly volatile digital currencies are their exponential surge in price this year and their lack of correlation to traditional investment assets.