Galaxy Asset Management Surpasses $10 Billion AUM, Stoked by Soaring Institutional Crypto Interest
Summary:
Digital asset firm, Galaxy Asset Management, has exceeded $10 billion in assets under management, largely due to a surge in institutional interest in digital assets. CEO Mike Novogratz marked this as a part of the continuous effort in enhancing investor access to the expanding digital economy. The firm's assets rose by 24.8% in February, largely driven by market appreciation. An increase in assets was also partially due to the launch of Invesco Galaxy Bitcoin ETF. Moreover, Galaxy Asset Management has been assisting digital token exchange platform, FTX, in managing its crypto holdings responsibly.
Digital asset investment entity, Galaxy Asset Management, has surpassed a value of $10 billion in assets under management, attributing this to a rise in institutional interest in the world of digital assets. On March 19, Mike Novogratz, CEO of Galaxy Digital, announced the accomplishment on X, stating it as an inclusion in the "ongoing process of providing investors with greater access to the burgeoning digital economy." On March 18, an update on the company's blog reported GAM's estimated assets under management at $10.1 billion as of February 29, 2024. There was a remarkable 24.8% rise of the firm's assets in February, primarily due to market appreciation, yet somewhat tempered due to some net outflows associated with a "current opportunistic initiative". GAM further stated that over the past year, its AUM has more than tripled due to the "escalating institutional interest in digital assets." In light of this, Mike Novogratz’s post of March 19 was highlighted. Source: X
The AUM growth was also attributed to a number of passive, active, and venture investment strategies, including the most recently launched Invesco Galaxy Bitcoin ETF (BTCO). However, BTCO lags other competitors in terms of inflows, registering only $175 million to date, according to data from Farside Investors. This is only surpassed in lower inflows by the Franklin Bitcoin ETF (EZBC) and the WisdomTree Bitcoin Fund (BTCW) since their launch in mid-January. Invesco Galaxy is presently contending for approval of its spot Ethereum ETF application, but the determination for approval or rejection was postponed in early February, with the final verdict set for July 5.
In 2023, digital asset exchange platform FTX charged Novogratz’s firm with the responsibility for the sale, staking, and hedging of the platform's cryptocurrency holdings, stating that it is working in close collaboration with the FTX estate in order to "responsibly capitalize on the firm's digital asset holdings in a way that safeguards and fully leverages the value for the advantage of creditors without destabilizing the markets." The company further added that these efforts have also factored into the expansion of the firm’s AUM.
As a subsidiary of Galaxy Digital Holdings, Galaxy Asset Management is the institutional investment branch, along with Global Markets and Digital Infrastructure Solutions. Steve Kurz stands as the Global Head of GAM, which was established in 2018. At the end of the trading day, shares of Galaxy Digital (GLXY) dropped 4% to $12.80, however, shares have augmented by 23.5% since the outset of the year. Most of these increases followed the approval of spot Bitcoin ETFs in mid-January, although the stock is still down by about 70% from its $40 record high at the previous crypto market peak in November 2021. Magazine: Inside Pink Drainer — Cybersecurity analyst justifies his crypto scam enterprise.
Published At
3/19/2024 9:02:02 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.