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Novogratz’s Galaxy reaches $10B AUM amid surge of investor interest in crypto

Galaxy’s asset management arm partially attributed the milestone to its spot Bitcoin ETF with Invesco, though inflows have been low.



Source: Cointelegraph

Crypto investment firm Galaxy Asset Management has exceeded $10 billion in assets under management (AUM) for the first time, citing a surge of institutional interest in digital assets. 

On March 19, Galaxy Digital CEO Mike Novogratz shared the milestone on X, saying i was part of “continuous progress in enabling investor access to the growing digital economy.”

In a company blog post updated on March 18, Galaxy Asset Management (GAM) reported preliminary AUM of $10.1 billion as of Feb. 29, 2024.

The firm’s assets increased by 24.8% in February, “primarily driven by market appreciation,” but were partially offset by net outflows from an “ongoing opportunistic mandate.”

GAM added it has more than tripled its AUM over the last year, which “reflects a surge in institutional interest in digital assets.”

Source: Mike Novogratz

The company also attributed the AUM increase to “more than a dozen passive, active, and venture investment strategies,” including the recently launched Invesco Galaxy Bitcoin ETF (BTCO).

However, BTCO has lagged behind its competitors in terms of inflows, with just $175 million to date, according to Farside Investors. Only the Franklin Bitcoin ETF (EZBC) and the WisdomTree Bitcoin Fund (BTCW) have seen lower inflows since they were launched in mid-January.

Invesco Galaxy is also in the race for an approved spot Ether (ETH) exchange-traded fund (ETF) application, though the decision to approve or reject the application was delayed in early February, with the final deadline set for July 5.

In 2023, the FTX estate appointed Novogratz’s firm to assist with the selling, staking and hedging of its crypto holdings.

It said it is working closely with the FTX estate “to monetize the firm’s digital asset holdings in a responsible manner that protects and maximizes value for the benefit of creditors without roiling markets.”

“That effort has also contributed to the firm’s AUM growth,” it added.

Galaxy Asset Management is the institutional investment division of Galaxy Digital Holdings, which also comprises Global Markets and Digital Infrastructure Solutions. Steve Kurz is the global head of GAM, which began in 2018.

Galaxy Digital stock (GLXY) closed down 4% on the day at $12.80 in after-hours trading, but shares have gained 23.5% since the beginning of the year. Most of those gains came after spot Bitcoin (BTC) ETFs were approved in mid-January; however, the stock remains down almost 70% from its $40 all-time high during the last crypto market peak in November 2021.

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