Bitcoin Bull Michael Novogratz’s firm, Galaxy Digital, has acquired two cryptocurrency corporations in preparation to fulfill a “larger wave of institutional demand” for bitcoin.
Huge Wave of Institutional Demand for Bitcoin Incoming
Galaxy Digital Holdings introduced Friday that it has acquired two cryptocurrency buying and selling corporations: Drawbridge Lending and Blue Fireplace Capital.
New York Metropolis-headquartered crypto monetary companies and funding administration firm Galaxy Digital supplies buying and selling, asset administration, and funding banking companies.
“Institutional traders and corporates have gotten extra educated and comfy with digital belongings and they’re more and more greedy the aim and significance of cryptocurrency of their funding methods,” commented Mike Novogratz, founder and CEO of Galaxy Digital.
Throughout his firm’s Q3 2020 earnings name on Friday, Novogratz mentioned that the Covid-19 pandemic was “actually an accelerant for the cryptocurrency enterprise for bitcoin, for blockchain, for all the things that we do … I see an unbelievable alternative for our firm and for the area.” Bitcoin is buying and selling at $16,250 on the time of writing. Novogratz defined that the cryptocurrency is buying and selling at this value “not as a result of there’s a speculative mania occurring,” elaborating:
It’s buying and selling like that as a result of establishments, hedge funds, excessive web value people, household workplaces are all shifting into bitcoin. They’re shifting in as a retailer of wealth, they’re shifting in as an inflation hedge, they’re shifting in as a result of it’s grow to be an institutional asset.
Not too long ago, famend billionaire investor Invoice Miller mentioned that he thinks “each main financial institution, each main funding financial institution, each main excessive web value agency goes to finally have some publicity to bitcoin or what’s prefer it.” JPMorgan’s analysts additionally mentioned, “some traders that beforehand invested in gold ETFs, comparable to household workplaces, could also be bitcoin as an alternative choice to gold.”
Chicago-based Drawbridge Lending is a CFTC-regulated firm that gives business and particular person loans on secured bitcoin held at a certified custodian. Blue Fireplace Capital, additionally based mostly in Chicago, supplies funding brokerage and buying and selling companies with a give attention to crypto belongings.
We’re trying ahead to seamlessly integrating Drawbridge and Blue Fireplace into Galaxy Digital Buying and selling … to assist additional meet what we imagine will probably be a fair larger wave of institutional demand.
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