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Capitalizing on the Crypto Boom, Galaxy Digital's AUM Reaches $10 Billion

Galaxy Digital gains financial weight and authority thanks to the bullish crypto market

Galaxy Digital announces that its assets under management (AUM) surpassed the $10 billion mark. On March 19, Galaxy Digital's CEO, Mike Novogratz, took to X, revealing this achievement as a testament to the firm's continuous effort in

 "enabling investor access to the growing digital economy." 

A company blog post updated on March 18 detailed the preliminary AUM figure of $10.1 billion as of February 29, 2024. This milestone represents a 24.8% increase in February alone, attributed primarily to market appreciation. Despite facing net outflows from an ongoing opportunistic mandate, Galaxy's ability to more than triple its AUM over the past year underscores the growing institutional interest in digital assets. 

Institutional demand and investment strategies propel growth

Galaxy Asset Management's remarkable growth to $10.1 billion in assets under management is significantly propelled by the rising institutional interest in digital assets. This surge is captured in Galaxy's diversified investment approaches, encompassing over a dozen strategies that span passive, active, and venture investments. 

A key player in this expansion is the Invesco Galaxy Bitcoin ETF (BTCO), which, despite its recent launch, has already attracted $175 million in inflows. This figure, while trailing behind some competitors, underscores the nuanced landscape of investor sentiment within the crypto ETF space. 

According to Farside Investors, only the Franklin Bitcoin ETF (EZBC) and the WisdomTree Bitcoin Fund (BTCW) have recorded lower inflows since their mid-January debut. Galaxy's ambition doesn't stop at Bitcoin; the firm is actively pursuing an approved spot Ethereum ETF, with a decision awaited by July 5. 

The future outlook: ventures and market impact

Galaxy Asset Management, under the umbrella of Galaxy Digital Holdings, is poised for future growth, driven by its strategic ventures and a keen eye on market opportunities. In 2023, the firm was selected by the FTX estate to oversee the selling, staking, and hedging of its crypto holdings, a responsibility aimed at 

"monetizing the firm’s digital asset holdings in a responsible manner that protects and maximizes value for the benefit of creditors without roiling markets." 

This collaboration is not only a testament to Galaxy's expertise in managing substantial digital assets but also contributes to its AUM growth. The outlook for Galaxy and the broader crypto market remains optimistic, with Galaxy's stock (GLXY) showcasing a 23.5% gain since the year's start, largely buoyed by the approval of spot Bitcoin ETFs. While GLXY has yet to recover from its peak, the strategic initiatives and market adaptations signal a robust pathway forward for Galaxy.