• Mike Novogratz, the CEO of Galaxy Digital, is optimistic about crypto investments.
• The billionaire investor believes that Bitcoin and Ethereum have been the best-performing assets in the world in terms of risk-adjusted returns.
• He further suggested that the US could lose its position as a financial and innovation leader.

Mike Novogratz, the CEO of Galaxy Digital, believes that Bitcoin and Ethereum are the top two investments for risk-adjusted returns. The billionaire investor made this comment during the company’s earnings call. He remarked,

“On a risk-adjusted basis, that’s volatility adjusted, Sharpe ratio adjusted, Bitcoin and Ethereum have been the two best-performing assets in the world this year. They’ve been the two best-performing assets in the world over the last two years. So, whatever Jamie Dimon wants to say, whatever the Biden administration wants to say, they’re just wrong, and the world knows that.”

Steve it has outperformed all assets ytd, over 2 years and 3 years on a risk adjusted weighting (sharpe ratio) It’s been safer than JPM and Google. Run the numbers yourself. https://t.co/uA15XaoUTo

— Mike Novogratz (@novogratz) March 28, 2023

What’s driving crypto

Novogratz believes that the selling that was necessary to take place did, so the market is now in a better place. He also notes that retail investors have been the main drivers of the recent surge in prices. The Galaxy Digital CEO further explains,

“What’s promising, and what has driven crypto broadly this year, is two things. One, all the selling that needed to get done got done, right? There was so much bad news, if you had to sell, panic selling and just the nervousness of “Oh my God! This thing could go to zero,” and people were in sheer panic, you had seller’s exhaustion. But, you’ve had Asia reopen. China has—you know, post the Xi protests around COVID Zero, China took the regulatory boot of the necks of their tech companies, and that includes crypto, so you’re seeing, with Chinese traveling, you’re seeing more activity from Asia.”

What the future holds for Bitcoin and crypto

Novogratz highlighted the adoption of crypto in the Middle-East, Hong Kong and Europe, which he believes is a good sign for the industry. He thinks that the Biden administration’s approach to crypto is misguided and could lead to the US losing its place as a financial market leader. He also believes that Bitcoin could be higher in a few months, saying,

“The market feels strong, and when I look at it technically on charts, we’ve had big weekly closes. I’m surprised to hear myself say this, given where my mindset was in late December, but it would not surprise if we were substantially higher three months, six months, nine months from now.”