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 progress of Galaxy Digital’s crypto derivatives enterprise.

Belongings underneath administration totaled $407.four million on the finish of the third quarter, which embody $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, founding father of EOS.

Galaxy’s Bitcoin funds rose 17.3% within the third quarter. Its large-cap Crypto Index Fund returned 32.3%. Nonetheless, the corporate wasn’t in a position to flip a revenue; its web loss amounted to $44.6 million for the three months ending Sept. 30.

Galaxy Digital was based in 2018 by billionaire Mike Novogratz in an effort to deliver extra institutional traders to digital property. Novogratz stated in in the present day’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 traders, 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 traders are flocking to Bitcoin in higher numbers within the fourth quarter. Grayscale’s Bitcoin Belief noticed report inflows initially of November, placing it on observe to succeed in 500,000 BTC by the tip of 2020. That will quantity to roughly 2.7% of Bitcoin’s circulating provide.

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

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