Galaxy Digital Holdings’ sector focused on institutional investments, Galaxy Asset Management, has hit a new high by reaching over $10 billion in Assets Under Management (AUM) as of February 29, 2024. The division attributes this success to the increasing interest from institutional investors in digital assets. Mike Novogratz, the CEO of Galaxy Digital, shared the news on March 19 via X, highlighting the company’s commitment to expanding access to the digital economy.
Over the past twelve months, Galaxy Asset Management’s AUM has more than tripled. This growth stems from a mix of investment strategies, including passive, active, and venture investments. One notable strategy involves the Invesco Galaxy Bitcoin ETF (BTCO), though it has seen modest inflows of $175 million so far. It ranks just behind the Franklin Bitcoin ETF (EZBC) and the WisdomTree Bitcoin Fund (BTCW) in terms of inflows, even though both were launched only in mid-January and have seen even less.
By March 18, the preliminary AUM report showed a 24.8% increase since February, reaching $10.1 billion. Despite a drag on further growth due to net outflows from an opportunistic mandate, general market growth was a significant growth driver. Nevertheless, the news did not prevent Galaxy Digital’s stock (GLXY) from falling 4% to $12.80 in after-hours trading. However, since the beginning of the year, the stock has seen a 23.5% increase, thanks to the approval of spot Bitcoin ETFs in mid-January, though it’s still well below the November 2021 all-time high of $40.
Digital Assets and Market Trends
Galaxy Digital, which was established in 2018, is eagerly awaiting regulatory approval for a spot Ethereum ETF, expected by July 5. Steve Kurz leads the firm as the Global Head of GAM, under which falls Galaxy Digital Holdings’ Global Markets and Digital Infrastructure Solutions divisions.
The recent success in asset management aligns with significant inflows into Bitcoin ETFs, pointing towards a potential surge in Bitcoin adoption. However, Novogratz has cautioned that Bitcoin’s price might correct to as low as $50,000, a prediction seemingly coming true as Bitcoin’s value dropped from $73,580 on March 14 to $63,877.
Novogratz further explained in a CNBC interview that the continuous net inflows into the nine U.S. spot Bitcoin ETFs could drive BTC’s price up. Conversely, a shift to net outflows might signal the market’s first significant correction. This trend is now a vital indicator for traders monitoring the movements of spot Bitcoin ETFs.