Galaxy Asset Management, a division of Galaxy Digital Holdings, reached a significant milestone by surpassing $10 billion in Assets under Management (AUM) for the first time on February 29, 2024. Mike Novogratz, CEO of Galaxy Digital, announced this achievement on March 19, highlighting the growing interest among institutional investors in digital assets as a key factor.
The remarkable growth in AUM, more than tripling over the past year, was attributed to various investment strategies employed by Galaxy Asset Management, including passive, active, and venture investment strategies. Notably, the Invesco Galaxy Bitcoin ETF (BTCO), one of the firm’s investment vehicles, has seen modest inflows of $175 million to date, trailing behind other recently introduced Bitcoin ETFs.
Despite reaching the milestone, Galaxy Digital’s stock (GLXY) experienced a 4% decline in after-hours trading, closing at $12.80. However, the stock price has seen a 23.5% increase since the beginning of the year, driven by the approval of spot Bitcoin ETFs in mid-January.
Galaxy Digital is awaiting regulatory approval to launch a spot Ethereum ETF, with a decision expected by July 5. The firm, founded in 2018, encompasses Galaxy Digital Holdings’ Global Markets and Digital Infrastructure Solutions divisions and is led by Steve Kurz, the Global Head of GAM.
While celebrating the milestone, Novogratz also expressed caution regarding Bitcoin’s price, predicting a potential correction with the price dropping as low as $50,000. This prediction aligns with recent market movements, as Bitcoin has dipped from its peak of $73,580 on March 14 to $63,877 at the time of evaluation.
Novogratz emphasized the significance of monitoring net inflows into the nine U.S. spot Bitcoin ETFs, suggesting that continued inflows could drive BTC’s price higher. Conversely, a shift to net outflows could signal the onset of a significant market correction. This trend in ETF inflows and outflows has become a critical factor for traders tracking Bitcoin’s price movements.
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