Galaxy’s AUM Hits $10 Billion as Institutional Interest in Digital Assets Soars

Galaxy Asset Management Achieves Milestone in AUM

Galaxy Asset Management, a leading crypto investment firm, has reached a significant milestone by surpassing $10 billion in assets under management (AUM). This achievement comes amidst a notable increase in institutional interest in digital assets.

Galaxy Digital CEO’s Statement

In a recent announcement, Galaxy Digital CEO Mike Novogratz expressed the company’s continuous efforts in providing investors with access to the expanding digital economy. Novogratz highlighted the firm’s achievement of exceeding $10 billion in AUM for the first time, solidifying its position as a global leader in digital asset management.

Reported AUM and Growth

According to a blog post from Galaxy Asset Management (GAM), the firm reported a preliminary AUM of $10.1 billion as of February 29, 2024. The post also mentioned a significant 24.8% increase in assets during February, driven primarily by market appreciation. Despite some net outflows from an ongoing opportunistic mandate, the overall growth trajectory remains impressive.

Diverse Investment Strategies

GAM attributed the increased AUM to a diverse range of investment strategies, including passive, active, and venture approaches. The recent launch of the Invesco Galaxy Bitcoin ETF (BTCO) has also played a role in contributing to the firm’s growth.

ETF Inflows and Future Plans

While BTCO has seen some inflows, it has experienced relatively lower uptake compared to its competitors. Invesco Galaxy is also awaiting approval for a spot Ethereum ETF application, with a final decision deadline set for July 5.

Galaxy’s Expansion and Leadership

In 2023, Galaxy Asset Management was appointed by the FTX estate for various crypto-related services. Steve Kurz leads the division as the Global Head of GAM, overseeing its institutional investment activities within Galaxy Digital Holdings.

Market Performance and Future Expectations

Despite fluctuations in Galaxy Digital stock (GLXY), the company’s shares have shown positive growth since the approval of spot Bitcoin ETFs. Looking ahead, Galaxy Asset Management anticipates increased involvement from top wirehouses in spot Bitcoin ETFs, signaling a potential trend towards institutional adoption in the near future.