Galaxy Asset Management (GAM), a crypto investment firm, has achieved a significant milestone by surpassing $10 billion in assets under management (AUM) for the first time. The achievement is attributed to a surge in institutional interest in digital assets.
Galaxy Digital CEO Mike Novogratz announced the milestone on social media platform X on March 19, highlighting it as a sign of continuous progress in enabling investor access to the growing digital economy.
According to a blog post updated on March 18, GAM reported preliminary AUM of $10.1 billion as of February 29, 2024. The firm’s assets increased by 24.8% in February, primarily driven by market appreciation.
The substantial increase in AUM is attributed to a surge in institutional interest in digital assets. GAM has more than tripled its AUM over the past year, fueled by various investment strategies, including passive, active, and venture strategies.
The recent launch of the Invesco Galaxy Bitcoin ETF (BTCO) is also mentioned as a contributing factor. However, BTCO has seen relatively lower inflows compared to its competitors since its launch.
Invesco Galaxy is awaiting approval for a spot Ether exchange-traded fund (ETF) application, with the final decision expected by July 5.
In 2023, Galaxy Digital was appointed by the FTX estate to assist with selling, staking, and hedging its crypto holdings. This collaboration has also contributed to GAM’s AUM growth.
Galaxy Asset Management is the institutional investment division of Galaxy Digital Holdings, which includes Global Markets and Digital Infrastructure Solutions. Steve Kurz serves as the global head of GAM.
Galaxy Digital stock (GLXY) closed down 4% on the day at $12.80 in after-hours trading but has gained 23.5% since the beginning of the year. However, the stock remains down nearly 70% from its all-time high during the last crypto market peak in November 2021.
The milestone achieved by Galaxy Asset Management reflects the increasing institutional interest in digital assets and highlights the growing significance of cryptocurrency investment strategies in the financial industry.
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