Mike Novogratz Sees `Speculative Mania' in Bitcoin Futures Rally

(Bloomberg) -- Hedge fund manager Michael Novogratz said a rally in futures prices helps justify interest in bitcoin from large-scale investors, and that they’ll be expecting substantial gains.

“The market trades like it wants to go up, not down,” Novogratz, founder of Galaxy Investment Partners, said Monday in an email. “We are in a speculative mania and my sense is we are still fairly early.”

He compared the market capitalization of bitcoin, at less than $300 billion, to that of gold at $7.7 trillion. He said the futures market is a “real plus” for cryptocurrencies and he believes it will eventually do hundreds of millions in volume.

Novogratz has called bitcoin "the biggest bubble of our lifetimes" and is starting a $500 million hedge fund to invest in cryptocurrencies, Bloomberg has reported.

©2017 Bloomberg L.P.