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Galaxy Digital’s Q3 earnings mirror crypto euphoria

Galaxy Digital’s Q3 earnings mirror crypto euphoria

Galaxy Digital’s over-the-counter buying and selling desk posted report volumes within the third quarter, signaling as soon as once more that institutional uptake of digital property is on the rise. 

The corporate’s third-quarter earnings report confirmed a 75% year-over-year rise in buying and selling volumes, reaching roughly $1.four billion. The rise was attributed to an increasing counterparty base, the rollout of an digital buying and selling platform and the continued development of Galaxy Digital’s crypto derivatives enterprise.

Property underneath administration totaled $407.four million on the finish of the third quarter, which embrace $82.four million in passive Bitcoin (BTC) and index funds and $325 million within the Galaxy EOS VC Fund. The latter is a partnership with blockchain service provider financial institution Block.one, founding father of EOS.

Galaxy’s Bitcoin funds rose 17.3% within the third quarter. Its large-cap Crypto Index Fund returned 32.3%.

Mike Novogratz, founder and CEO of Galaxy Digital, informed Cointelegraph:

“We have seen a outstanding surge of institutional curiosity within the digital asset house this 12 months, as buyers search for hedges towards market volatility and new areas to search out risk-adjusted returns in a low-rate setting. Looking forward to 2021, we count on the adoption of digital property, equivalent to Bitcoin and Ethereum, to proceed as extra conventional buyers embrace the asset class as a diversifier and protected haven different to gold.”

Tim Plakas, head of gross sales at Galaxy Digital Buying and selling, elaborated:

Galaxy’s buying and selling enterprise has seen important development over the previous 12 months as our counterparty base has matured and grown in dimension on account of extra conventional funds coming into the crypto house […] Over the following 6-12 months, I count on these traits to proceed.”

Plakas highlighted the Q3 acquisition of BlueFire, a proprietary buying and selling agency specializing in digital asset liquidity, as one of many largest sources of aggressive benefit. 

Galaxy Digital was based in 2018 by billionaire Mike Novogratz in an effort to deliver extra institutional buyers to digital property. Novogratz mentioned in right now’s official press launch that Galaxy Digital is getting ready itself for “the clear, incoming wave of institutional adoption forward of digital property and blockchain options by buyers, corporates and governments.”

Whereas the 2017 bull market was largely pushed by retail FOMO — the worry of lacking out — the euphoria surrounding Bitcoin in 2020 is essentially tied to institutional uptake.

There’s proof that institutional buyers are flocking to Bitcoin in larger numbers within the fourth quarter. Grayscale’s Bitcoin Belief noticed report inflows in the beginning of November, placing it on monitor to achieve 500,000 BTC by the top of 2020. That will quantity to roughly 2.7% of Bitcoin’s circulating provide.

Institutional buyers equivalent to Paul Tudor Jones and Stanley Druckenmiller additionally personal Bitcoin. Each have touted the cryptocurrency’s development potential within the present macro setting. 

Bitcoin’s value peaked close to $16,500 within the final 24 hours, in keeping with TradingView knowledge. It’s nonetheless buying and selling nicely north of $16,000 on the time of writing.