The real-life marketplace Galaxy Digital recorded record volumes in the third quarter, which in turn indicates that institutional appetite for digital assets is growing.
The company’s third-quarter income statement showed that trading volume increased 75% year over year to about $ 1.4 billion. The increase is due to the expansion of the counterparty base, the launch of the electronic trading platform and the continued growth of the Galaxy Digital derivatives business.
Assets Under Management totaled $ 407.4 million at the end of the third quarter, including $ 82.4 million in Bitcoin Liabilities (BTC) and Index Funds and $ 325 million in Galaxy EOS VC Fund. The latter is a partnership with a commercial bank, blockchain, Block.one, the founder of EOS.
Galaxy Bitcoin Funds grew 17.3% in the third quarter. The Biggest Capital Crypto Index Fund is back 32.3%.
Mike Novogratz, founder and CEO of Galaxy Digital, told Cointelegraph:
“This year we are seeing a notable increase in institutional interest in the digital asset space as investors seek to hedge against market volatility and new areas for risk-adjusted returns in a low-price environment. Looking ahead to 2021, we expect the adoption of digital assets like Bitcoin and Ethereum to continue as traditional investors use the asset class as an alternative, diversified and safe haven for gold. ”
Tim Blackas, Sales Manager at Galaxy Digital Trading, explained:
Galaxy’s trading business has grown significantly over the past year, as the counterparty base matured and expanded in size as more traditional funds […] flooded into the cryptocurrency space over the next six to twelve months, hopefully beyond. ”
Blackas cited its third-quarter acquisition of BlueFire, a 100% digital asset liquidity company, as one of its largest sources of competitive advantage.
Galaxy Digital was founded in 2018 by billionaire Mike Novogratz with the goal of attracting more institutional investors in digital assets. Novogratz said today in an official press release that Galaxy Digital is gearing up for “the coming wave of institutional adoption ahead of digital assets and blockchain solutions from investors, companies and governments.”
While the beef market in 2017 was largely driven by retail FOMO – fear of missing out – the bitcoin euphoria in 2020 has a lot to do with institutional growth.
There is evidence that institutional investors are flocking to more bitcoin in the fourth quarter. At the beginning of November, the Grayscales Bitcoin Trust recorded record deliveries, and by the end of 2020 it will reach 500,000 BTC. This will account for approximately 2.7% of current Bitcoin offerings.
Institutional investors like Paul Tudor Jones and Stanley Druckenmiller also own bitcoins. Both are driving the growth of cryptocurrency in the current macro environment.
Bitcoin price has peaked at $ 16,500 in the last 24 hours, according to TradingView, and is still trading well above $ 16,000 at the time of writing.