April 19, 2024

Galaxy Digital’s asset management subsidiary, led by Steve Kurz, has reached a new milestone amid heightened investor interest in crypto assets. According to the report, the firm’s asset under management (AUM) has surpassed $10 billion for the first time since its inception.

Galaxy Asset Management (GAM) attributes this incredible feat to the burgeoning institutional interest in crypto assets and strategic investment approaches.

ETF Launch and Strategic Investments Boosted GAM’s AUM

On March 19, Mike Novogratz, CEO of Galaxy Digital, GAM’s parent company, took to X (formerly Twitter) to announce this remarkable achievement. According to Novogratz, this new feat is a testament to the progress in allowing investors to access the expanding digital economy easily.

In a March 18 blog post, GAM said its preliminary AUM was $10.1 billion as of February 29, 2024, a 24.8% increase from the previous month. According to the firm, the surge was mainly due to the ongoing market-wide rally and partially driven by the increasing spot Bitcoin ETF net inflows.

Further, GAM noted that the recent growth represents a threefold increase in its AUM over the past year, underscoring the surging institutional interest in virtual assets. The investment management company further attributed the growth to increased investor confidence and other investment ventures.

Notably, GAM now offers a vast array of investment products, including over a dozen active, passive, and venture capitalist investments. Recently, in partnership with Invesco, GAM launched Invesco Galaxy Bitcoin ETF (BTCO), which offers managed exposure to Bitcoin to US investors.

However, while BTCO’s launch played a vital role in fueling the recent surge in the company’s AUM, it has trailed behind its rivals in terms of capital inflow. BTCO has only received $175 million in inflows to date, highlighting the highly competitive atmosphere among the recently launched spot BTC ETF offerings.

However, this has not deterred Galaxy; it has joined the race for a spot in Ether ETF approval, awaiting the US SEC’s decision. The SEC has delayed its decision to reject or approve the spot Ethereum ETF applications in February, but the final date is set for July 5. 

GAM Cements Position in Crypto with FTX Estate Collaborations and Other Endeavors

Besides ETF and strategic investments, GAM has been pivotal in helping investors recover their lost assets from the collapsed FTX exchange.

According to the March 18 blog post, GAM is working with the FTX estate to monetize the crypto assets holdings to protect the interest of creditors and minimize loss of value. This effort also contributed to GAM’s increase in AUM.

Galaxy Asset Management plans to introduce compelling products tailored to institutional investors’ needs as part of its efforts to bring investors into the digital asset realm. It will also continue investing in promising startup firms to foster innovation and the development of the blockchain industry. 

In addition, GAM is committed to endeavors that will help shape the regulatory landscape in crypto to promote innovation and protect investors. 


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