Galaxy Digital Reports $860M in Net Income in Q1 2021 and Surpasses $1 Billion in AUM

Galaxy Digital Reports $860M in Net Income in Q1 2021 and Surpasses $1 Billion in AUM

Mike Novogratz’s Galaxy Digital reported a profitable Q1 2021 with $860.2 million in net comprehensive income, a complete turnaround from the $27 million loss in Q1 2020. Novogratz, founder, and CEO of Galaxy Digital said,

“Galaxy Digital reported another consecutive record quarter, as net comprehensive income grew to $860 million from $336 million in the prior quarter.”

Income from the company’s trading business increased to $508.7 million, while net realized gains from investments were $151.1 million in the quarter.

The firm made 12 new investments in the quarter and now holds about 80 investments across approximately 60 portfolio companies.

In Q1 of 2021, during the bull market, Galaxy Digital reported an increase of 50% in trading volumes from the last quarter and a surge of 510% in gross counterparty loan originations to $670 million.

Galaxy Digital Trading also onboarded over 100 new counterparties in the quarter. The firm further launched several products in this period, including a Bitcoin ETF and an Ether ETF.

As of March 31, 2021, the company had $1.27 billion in assets under management.

In the Bitcoin mining realm, Galaxy started hosting its machines at a third-party data center in the United States and expects to achieve up to 1,995 Petahash per second (PH/s) of mining capacity delivered monthly by the end of next year.

The company has appointed Erin Brown as its Chief Operating Officer, who previously served as Chief Risk Officer at Jump Trading. Novogratz said,

“Beyond delivering dramatic organic growth, we announced we would acquire BitGo, which will establish Galaxy Digital as the first full-service digital asset financial platform for institutions and ensure our business is aligned with broader institutional adoption.”

Read Original/a>
Author: AnTy

Investment Bank Cowen to Custody Crypto for Institutions, Signs Partnership With PolySign

Investment Bank Cowen to Custody Crypto for Institutions, Signs Partnership With PolySign

Renowned investment bank Cowen Inc is set to make its foray into the cryptocurrency market.

The firm would offer hedge funds and other asset managers crypto custody service through a partnership with fintech company PolySign Inc, per an official announcement.

Cowen Leads PolySign’s Funding Round

Cowen said that its digital asset investment division would provide crypto custody services to institutional clients, helping them seamlessly secure, access, and leverage Bitcoin and other cryptocurrencies in their portfolios.

As part of the partnership, the bank invested $25 million into PolySign, which is a part of the $53 million funding raised for the firm recently. Other investors include Blockchain.com, Race Capital, Sandia Holdings, and PilotRock Investments.

The custody solutions for the digital assets will be provided by Standard Custody & Trust Company, a subsidiary of PolySign. Standard recently received a trust company charter from the New York State Department of Financial Services.

The CEO of Cowen, Jeffrey Solomon, noted that the heightened demand for crypto assets had intensified the importance of custody service, especially since there is a lack of clear regulations for asset managers. Solomon added,

“The demand is clearly here. We’re going to be able to help a lot of our institutional clients get over the hump and start trading digital assets in the not-too-distant future.”

Founded in 1918 and headquartered in New York, Cowen holds almost $12 billion in assets under management. It is a diversified financial services firm that offers investment banking services, equity, and credit research services.

Cowen also offers sales and trading, prime brokerage, global clearing, commission management services, and actively managed alternative investment products.

Surging Crypto Prices Luring Investment Firms To Take A Closer Look At Crypto

The recent surging crypto prices seem to be luring hedge funds and investment managers into entering the market. Due to the high demand for crypto, wall street banks want to help their clients gain access to digital assets.

Prime examples of investment banks with unveiled plans to help their clients get exposure to the crypto markets are Goldman Sachs and Morgan Stanley.

However, Goldman and Morgan’s offerings differ from Cowen’s because they only offer indirect access to crypto through futures trading and mutual funds respectively. On the other hand, Cowen plans to actually provide custody for the underlying assets, which no major Wall Street firm has tried before.

Cryptocurrency exchange Gemini has also been winning in the crypto custody business. As of May 11, the exchange had reported about $30 billion worth of assets under management. Gemini works with the likes of BlockFi, CoinList, and WealthSimple.

Read Original/a>
Author: Jimmy Aki

BoE Governor Andrew Bailey Says Crypto Investors Trading In A Bubble

BoE Governor Andrew Bailey Says Crypto Investors Trading In A Bubble

  • Andrew Bailey’s public criticism of cryptocurrencies is well known, and the crypto detractor has not let up.
  • In a recent event, Bailey said crypto investors might see their investments go down the drain.

Crypto Has No Intrinsic Value

The Bank of England (BoE) Governor Andrew Bailey reiterated his earlier remarks that crypto investors should be prepared to lose all their money, per CNBC reports.

According to Bailey, crypto-assets generally do not have any intrinsic value, and their value proposition is zero.

The BoE governor has long been a critic of the nascent industry and was once quoted as saying that investors should be ready to see their investments erode. The first criticism was during the 2017 rally of Bitcoin. The digital asset, which traded as high as $20,000 then, subsequently dropped to a meager $3,122 in the opening months of 2018.

However, Bitcoin has made significant all-time highs (ATHs) in the past two years, rallying 80% since the beginning of the year but Bailey is not having any of it.

“I’m going to say this very bluntly again,” he added. “Buy them only if you’re prepared to lose all your money.”

Bailey’s comments closely resemble the Financial Conduct Authority’s (FCA) take on cryptocurrencies. The UK regulatory agency cautioned investors on trading cryptocurrencies in a released statement and said they might see their funds erode given the asset class’s volatility.

But this bad take does not seem to faze crypto investors who are most keen on the massive returns these virtual currencies bring.

Bitcoin itself has brought recognition to the crypto market and institutional investors now see it as a hedge against inflation.

Ethereum, the second most valuable cryptocurrency by market cap, has climbed 360% since the beginning of the bull run after making new all-time highs, and even meme-based cryptocurrency Dogecoin has not been left out, posting a whopping 12,700% increase since the turn of the year.

Other altcoins like Polkadot’s DOT and Ripple Labs’ XRP have not been left behind, with some increasing as much as 300% given the growing adoption.

Blockchain To Be Used In CBDC Design

Despite the many criticisms that trial cryptocurrencies, many central banks are looking to leverage the potential upsides blockchain affords to create central bank digital currencies (CBDCs).

CBDCs would be state-sanctioned and state-issued. They will also be equivalent to the fiat currency of the host country, only that they will be in digital format. Many national banks are already developing the digital form of their fiat currency, with Asian giant China leading in the race of wholesale CBDC use.

Read Original/a>
Author: Jimmy Aki

Cryptocurrency Related Stocks Tumbling in a Massive Divergence from Crypto Assets

Cryptocurrency Related Stocks Tumbling in a Massive Divergence from Crypto Assets

2021 has been an explosive year for crypto assets, with the total market cap rising from less than $790 million to nearly $2.5 trillion.

Coins like DOGE, CAKE, MATIC, BTT, LUNA, ETC, SOL, HOT, ENJ, BNB, RUNE, HNT, VET, and AVAX have rallied by four to five digits percent this year so far.

The face-melting uptrend in the crypto market has regulators warning about being cautious. Just this week, Bank of England Governor Andrew Bailey repeated the same words of caution: “Buy them only if you’re prepared to lose all your money.”

Responding to the question of financial stability, he said the central bank was well-positioned to respond to any threats that might arise.

He then objected to the use of cryptocurrency, saying, “I’m afraid crypto and currency are two words that don’t go together for me.”

“They have no intrinsic value,” said Bailey at a press conference Thursday.

Yesterday, SEC’s new chairman, Gary Gensler, also talked about the need for a regulatory framework for crypto exchanges to protect investors’ interests.

While the regulatory concerns are ramping as the crypto industry gets matured and the bull market rages on, the same repricing is absent from the crypto stocks.

The most popular crypto stock COIN has been on a decline ever since its launch in mid-April. After its stellar opening that saw Coinbase’s share price hitting nearly $430, it is currently trading down at $256.

“In crypto public equity world, last 5 days seems to be a massive rotation from “biz in crypto” to “alts I can trade,”’ noted Thomas Lee of Fundstrat. However, these are not equivalent rotations as compared to the over 40% drop in COIN share prices; crypto assets have surged much more violently, easily having a 40% run-up in a single day.

Marathon Digital Holdings is also having just as much of a rough month as MANA stock prices fell by 45% since early April. Silvergate Capital is another example, with SI’s share price down 41.5% in less than a month.

This massive divergence between crypto stocks and crypto-assets points to both retail and institutions being more interested in the pure crypto plays than indirect exposure through companies dealing with cryptocurrencies.

Read Original/a>
Author: AnTy

“Customer Demand” Pulling Them In; Goldman Sachs Joins Coin Metrics’ $15M Investment Round

“Customer Demand” Pulling Them In; Goldman Sachs Joins Coin Metrics’ $15M Investment Round

Money is pouring into the crypto market; as of April 27, 156 startups focused on digital technology had raised $3.1 billion, compared to just $2.3 billion raised in 341 deals in the entire 2020.

Coin Metrics has raised $15 million in a Series B investment round led by Goldman Sachs.

“We think this is a huge day for us,” Tim Rice, a co-founder and the firm’s chief executive officer said. “A huge credentialization.”

While Castle Island Ventures, Highland Capital Partners, Fidelity Investments, Avon Ventures, Communitas Capital, and Collab+Currency increased their investment in the company, new investors to join included Acrew Ventures, Morningside Group, BlockFi, and Warburg Serres Investments.

Founded in 2017, Coin Metrics is a cryptocurrency and blockchain data provider to institutional clients which plans to use the proceeds to grow in Europe and Asia, create new products and expand its current offerings.

Mathew McDermott, global head of digital assets for Goldman Sachs’s global markets division, will join Coin Metrics’ board of directors, Rice said in an interview.

According to Rice, the way large institutions such as asset managers and Wall Street banks are approaching crypto is different from the 2017 bull market as “This time around you have people looking for a holistic data solution,” he said. “They need to have solid data to get into the asset class.”

Fidelity Investments, one of Coin Metrics’ investors, is also its client. “We’ve definitely seen the institutions behave very seriously; they’re now signing contracts with us,” Rice said.

Banks that have been staying on the sidelines are also getting comfortable with the $2.47 trillion market.

“Customer demand is starting to pull them in,” Rice said.

Earlier this week, we reported that the largest cryptocurrency exchange in the US, Coinbase, also acquired data analytics platform Skew for an undisclosed amount to better serve its institutional and trading clients.

Money has been pouring into the crypto market amidst the ongoing bull run. Not just crypto assets but projects like Digital Asset Holdings LLC, Chainalysis Inc, Blockchain.com, Paxos Trust Co. are raising a lot of funds.

As of April 27, 156 startups focused on digital technology had raised $3.1 billion, compared to just $2.3 billion raised in 341 deals for all of 2020, according to CB Insights.

Read Original/a>
Author: AnTy

Uzbekistan is Legalizing Cryptocurrency Trading

Uzbekistan is reconsidering its stance on crypto trading by further license the activity.

The National Agency for Project Management under the President of the Republic of Uzbekistan (NAPM) has released an order that calls for amendment and an addition to the regulation on the procedure for licensing the activities of crypto-exchanges. The notice reads,

“Residents of the Republic of Uzbekistan have the right to carry out on crypto-exchanges all types of crypto-exchange trades in crypto-assets and tokens for national and foreign currencies. The choice of crypto-assets as an object of acquisition and, accordingly, the consequences of this choice are the risk of the buyer himself.”

These changes follow two decrees from President Shavkat Mirziyoyev, including one from July 2018 focusing on introducing measures to develop the digital economy in the country. The second one was in Sept. 2018, which focused on measures to organize the activities of crypto exchanges in the Republic of Uzbekistan.

To “create favorable conditions” for the further development of the crypto industry, it proposes changes to the procedure for licensing the activities of crypto exchanges.

In Dec. 2019, Uzbekistan banned its citizens from trading crypto; then, a year later, the first crypto trading exchange of the country called Uznex was launched in 2020.

Per NAPM’s latest documents, the proposed changes further seek to introduce procedures for the registration, issuance, and circulation of digital currencies.

Read Original/a>
Author: AnTy

Venture Capital Giant Is Planning to Raise $1 Billion to Invest In Cryptocurrencies and Startups

Venture Capital Giant Is Planning to Raise $1 Billion to Invest In Cryptocurrencies and Startups

Andreessen Horowitz, a venture capital giant, is looking to raise as much as $1 billion in cryptocurrencies and crypto startups.

This new fund aims to raise between $800 million and $1 billion from investors, reported the Financial Times, citing people familiar with the matter.

With this latest move, one of Silicon Valley’s highest-profile venture capital firms is introducing one of the largest pools of capital to crypto, potentially twice the size of its predecessor — its third crypto fund, which raised $515 million a year ago.

After the success of Coinbase, currently valued at about $60 billion down from the initial brief valuation of $100 billion, institutional investors such as endowments and foundations are now renewing their bet on the technology.

Founded in 2009 by Marc Andreessen and Ben Horowitz, the venture capital firm, which was also an early investor in Coinbase along with Ripple through traditional funds, was managing $35.8 billion in regulatory assets at the end of last year.

Its latest fundraising would rival the capital raised by Paradigm, a crypto investment firm founded by Coinbase co-founder Fred Ehsram and former Sequoia Capital partner Matt Huang in 2018.

Paradigm has raised $1 billion from investors, including endowments of Harvard and Yale universities.

Another one, Pantera Capital, aims to raise $600 million for a new blockchain fund that will combine investments in private companies and tradable tokens. Its last venture fund raised $175 million in 2018, which surged 3.8x in January this year.

Read Original/a>
Author: AnTy

51% of Young British Investors Trading or Holding Crypto: Charles Schwab Survey

51% of Young British Investors Trading or Holding Crypto: Charles Schwab Survey

This is more than double the number of young investors, aged between 18 and 37, involved in stocks.

Young British investors are more interested in cryptocurrencies than they are in stocks, revealed a survey by U.S. financial group Charles Schwab.

The retail investing behemoth, which is also looking at the crypto market “closely” and awaiting regulatory clarity before they start offering crypto investment, surveyed investors aged between 18 and 37.

Its finding showed that 51% of these young investors have traded or held cryptocurrencies, double the number, 25% of those who are buying or owning equities.

Meanwhile, a mere 8% of investors over the age of 55 have traded cryptocurrencies.

Compared to Bitcoin’s 70% and Ether’s 205% returns YTD, which is after the recent 23%-26% pullback from all-time highs, S&P 500 surged 10.09%, gold -5.85%, and WTI 33.33% during the same period. The press release from Charles Schwab presenting the survey read,

“As more young people purchase speculative products, there is a fear that these investors are not diversifying their portfolios enough to mitigate risks in case cryptocurrency markets decline.”

The survey’s findings revealed that seven out of ten young investors were uncertain about building protections against losses in the current financial environment.

Schwab conducted the survey earlier this year, between February and March 2021, among 1,000 UK investors holding at least one type of investment.

Read Original/a>
Author: AnTy

Retail Investing Behemoth Is ‘Closely’ Looking at Crypto Market; Awaiting ‘More Regulatory Clarity’

Retail Investing Behemoth Is ‘Closely’ Looking at Crypto Market; Awaiting ‘More Regulatory Clarity’

Operating nearly 32 million brokerage accounts with over $7 trillion in client assets, Charles Schwab says they will be highly competitive and disruptive when that comes.

Charles Schwab is looking “closely” and “cautiously” at the cryptocurrency market, said the head of the brokerage on Thursday, adding that they are awaiting more guidance from regulators before offering crypto capabilities on its platform.

It has been exploring the launch of crypto brokerage since last month, and as we reported, it has been seeking a compliance director for its futures and forex team that involves crypto aspects.

“We would like to see more regulatory clarity,” Schwab Chief Executive Officer Walt Bettinger said on a call with analysts.

“And if and when that comes, you should expect Schwab to be a player in that space in the same way it has been a player in other investment opportunities across the spectrum.”

The US Securities and Exchange Commission (SEC) has yet to provide any clear rules and regulations regarding digital assets, but with crypto-friendly Gary Gensler being the new chairman, “guidance and clarity” is expected soon.

One of the largest retail brokerages and retirement account providers in the industry, Charles Schwab added a record 3.2 million new clients in the first quarter of 2021, more new accounts than the entire 2020.

The company said it now operates nearly 32 million brokerage accounts and has more than $7 trillion in client assets.

The retail investing behemoth also said it is closely watching for any new developments on the regulator front regarding whether they allow a crypto-based investment-oriented product like an exchange-traded fund (ETF). “We recognize a bit, I’d say, well, what’s going on,” Bettinger said.

“If Charles Schwab, the company, decides to participate in the crypto market, we will be highly competitive, we will be disruptive, and we will be client-oriented.”

Read Original/a>
Author: AnTy

Uniswap Hits $10B In Weekly Trade Volume; DEX’s Current Pace Would Be $0.5 Trillion Per Year

Leading decentralized exchange (DEX) Uniswap has hit a new milestone.

The weekly trading volume on Uniswap surpassed $10 billion for the first time ever. Daily volume, meanwhile, is $1.5 billion, which hit its all-time high at $2.2 billion in late October.

The latest milestone represents half a trillion-dollar volume every year.

“Uniswap weekly trading volume just passed $10b for the first time!!! $10b/week is over $0.5 trillion per year,” said Uniswap creator Hayden Adams.

The first time, Uniswap hit $1 billion in weekly volume was in early August in 2020, and ever since then, these numbers have only been going up. Much like volume, liquidity is ever-growing as well, keeping above $8 billion.

image1

Uniswap currently has more than half of the market share at 51.7% in terms of volume, followed by Cuve at 18.6% and SushiSwap’s nearly 15%. CRV -3.91% Curve DAO Token / USD CRVUSD $ 2.90
-$0.11-3.91%
Volume 233.76 m Change -$0.11 Open $2.90 Circulating 273.68 m Market Cap 794.35 m
4 h Uniswap Hits $10B In Weekly Trade Volume; DEX’s Current Pace Would Be Half A Trillion-Dollars per Year 1 w Coinbase Accelerates Altcoin Listing Ahead of Going Public, Bringing Millions of Retail to DeFi 4 w Coinbase CEO Says Exchange is Open to CBDC Listings, Not Intimidated by DEXs
SUSHI -1.22% SushiSwap / USD SUSHIUSD $ 12.51
-$0.15-1.22%
Volume 482.49 m Change -$0.15 Open $12.51 Circulating 127.24 m Market Cap 1.59 b
4 h Uniswap Hits $10B In Weekly Trade Volume; DEX’s Current Pace Would Be Half A Trillion-Dollars per Year 1 w Cross-Chain Decentralized Exchange, THORchain (RUNE), Launches After 3 Long Years of Development 1 w CipherTrace Releases DeFi Compliance Solution Built on Chainlink to Abide by OFAC Sanctions Requirements

Overall, $49 billion has been recorded by DEXs in monthly volume in April so far. In Q1, the best month was February, $76.7 billion monthly volume.

The token UNI, meanwhile, is a $17 billion crypto-asset trading above $32.

Earlier this week, eToro, which has 20 million registered users globally, added support for UNI and LINK on its trading network, bringing the total number of crypto assets available to trade on the platform at 18. LINK -6.15% Chainlink / USD LINKUSD $ 36.27
-$2.23-6.15%
Volume 2.05 b Change -$2.23 Open $36.27 Circulating 419.01 m Market Cap 15.2 b
2 h Oracle Service API3 Inks Deal With OBP To Merge Conventional Banking With DeFi 4 h Uniswap Hits $10B In Weekly Trade Volume; DEX’s Current Pace Would Be Half A Trillion-Dollars per Year 1 d Social Trading Platform, eToro US, Adds Chainlink (LINK) & Uniswap (UNI) For Trading

“Now is the right time to be adding new cryptos to eToro. We have seen an explosion in retail investor appetite for the asset class and strong demand to invest across a greater range of tokens.”

Doron Rosenblum VP of Business Solutions at eToro

Read Original/a>
Author: AnTy