Galaxy Digital’s Q3 earnings mirror crypto euphoria

Minerva Biven

Galaxy Digital’s over-the-counter investing desk posted file volumes in the third quarter, signaling the moment once more that institutional uptake of digital property is on the increase. 

The company’s third-quarter earnings report confirmed a 75% year-on-yr rise in investing volumes, reaching about $1.4 billion. The maximize was attributed to an expanding counterparty foundation, the rollout of an electronic trading platform, and the continued growth of Galaxy Digital’s crypto derivatives small business.

Belongings beneath management totaled $407.4 million at the end of the third quarter, which include things like $82.4 million in passive Bitcoin (BTC) and index money, and $325 million in the Galaxy EOS VC Fund. The latter is a partnership with blockchain merchant lender Block.a single, founder of EOS.

Galaxy’s Bitcoin money rose 17.3% in the third quarter. Its huge-cap Crypto Index Fund returned 32.3%.

Mike Novogratz, founder and CEO of Galaxy Electronic, advised Cointelegraph:

“We’ve seen a extraordinary surge of institutional desire in the digital asset space this 12 months, as traders look for hedges towards industry volatility and new areas to locate chance-adjusted returns in a minimal-charge atmosphere. Wanting ahead to 2021, we assume the adoption of digital assets, these as Bitcoin and Ethereum, to carry on as a lot more conventional traders embrace the asset course as a diversifier and harmless haven option to gold.”

Tim Plakas, head of income at Galaxy Digital Investing, elaborated:

Galaxy’s investing enterprise has noticed sizeable development above the previous 12 months as our counterparty foundation has matured and developed in dimensions as a outcome of additional regular funds moving into the crypto space. […] Around the subsequent 6–12 months, I anticipate these tendencies to carry on.”

Plakas highlighted the Q3 acquisition of BlueFire, a proprietary buying and selling company specializing in digital asset liquidity, as one of the biggest sources of aggressive gain. 

Galaxy Digital was established in 2018 by billionaire Mike Novogratz in an effort to convey additional institutional buyers to digital assets. Novogratz mentioned in today’s official push release that Galaxy Electronic is planning by itself for “the crystal clear, incoming wave of institutional adoption forward of digital belongings and blockchain solutions by buyers, corporates and governments.”

Though the 2017 bull industry was largely driven by retail FOMO — the concern of lacking out — the euphoria bordering Bitcoin in 2020 is largely tied to institutional uptake.

There is evidence that institutional investors are flocking to Bitcoin in better quantities in the fourth quarter. Grayscale’s Bitcoin Have confidence in saw document inflows at the get started of November, placing it on keep track of to reach 500,000 BTC by the conclude of 2020. That would total to roughly 2.7% of Bitcoin’s circulating provide.

Institutional buyers this kind of as Paul Tudor Jones and Stanley Druckenmiller also individual Bitcoin. Both of those have touted the cryptocurrency’s expansion possible in the present macro ecosystem. 

Bitcoin’s selling price peaked in the vicinity of $16,500 in the final 24 hrs, according to TradingView data. It’s nevertheless buying and selling very well north of $16,000 at the time of composing.