Michael Novogratz, head of Galaxy Investment Partners, has delayed plans to launch what would have been the largest digital currency fund so far.

"We were supposed to launch on Dec. 15, and we paused," Novogratz told CNBC. "I didn't like the market conditions as a starting point to take other investors' money."

"We are still feverishly building out a full merchant bank for crypto, i.e., I am still very bullish on the space," he said.