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Bitcoin Bull Michael Novogratz’s company Galaxy Digital has acquired two cryptocurrency companies in preparation to meet a “larger wave of institutional demand” for bitcoin.
Big wave of institutional demand for Bitcoin is coming
Galaxy Digital Holdings announced on Friday that it has acquired two cryptocurrency trading firms: Drawbridge Lending and Blue Fire Capital.
Galaxy Digital, an investment management and financial services firm based in New York City, provides trading, asset management and investment banking services.
“Institutional investors and corporations are becoming more knowledgeable and comfortable with digital assets and are increasingly understanding the purpose and importance of cryptocurrency in their investment strategies,” said Mike Novogratz, founder and CEO of Galaxy Digital.
During his company’s third quarter 2020 earnings call on Friday, Novogratz said that the Covid-19 pandemic was “truly an accelerator for the cryptocurrency business for bitcoin, for blockchain, for everything we do … incredible opportunity for our company and for the space. ” Bitcoin is trading at $ 16,250 at the time of writing. Novogratz explained that the cryptocurrency is trading at this price “not because a speculative craze is underway”, elaborating:
It’s a trade this way because institutions, hedge funds, high net worth individuals, family offices are all shifting to bitcoin. They are entering as a store of wealth, they are entering as a hedge against inflation, they are entering because it has become an institutional asset.
Recently, famous billionaire investor Bill Miller said he thinks that “every big bank, every big investment bank, every big company with high net worth will eventually have some exposure to bitcoin or something.” JPMorgan analysts also said that “some investors who had previously invested in gold ETFs, such as family offices, may look to bitcoin as an alternative to gold.”
Chicago-based Drawbridge Lending is a CFTC regulated firm providing commercial and individual secured bitcoin loans held with a qualified depository. Blue Fire Capital, also headquartered in Chicago, provides investment brokerage and trading services with a focus on cryptocurrencies.
Novogratz continued:
We look forward to seamlessly integrating Drawbridge and Blue Fire into Galaxy Digital Trading … to help further satisfy what we believe will be an even bigger wave of institutional demand.
What do you think of Galaxy Digital’s acquisitions of two cryptocurrency companies? Let us know in the comments section below.
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