Bitcoin Bull Michael Novogratz’s company, Galaxy Digital, has acquired two cryptocurrency firms in preparation to meet a “bigger wave of institutional demand” for bitcoin.
Big Wave of Institutional Demand for Bitcoin Incoming
Galaxy Digital Holdings announced Friday that it has acquired two cryptocurrency trading firms: Drawbridge Lending and Blue Fire Capital.
New York City-headquartered crypto financial services and investment management company Galaxy Digital provides trading, asset management, and investment banking services.
“Institutional investors and corporates are becoming more knowledgeable and comfortable with digital assets and they are increasingly grasping the purpose and importance of cryptocurrency in their investment strategies,” commented Mike Novogratz, founder and CEO of Galaxy Digital.
During his company’s Q3 2020 earnings call on Friday, Novogratz said that the Covid-19 pandemic was “really an accelerant for the cryptocurrency business for bitcoin, for blockchain, for everything that we do … I see an unbelievable 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 there’s a speculative mania going on,” elaborating:
It’s trading like that because institutions, hedge funds, high net worth individuals, family offices are all moving into bitcoin. They’re moving in as a store of wealth, they’re moving in as an inflation hedge, they’re moving in because it’s become an institutional asset.
Recently, renowned billionaire investor Bill Miller said that he thinks “every major bank, every major investment bank, every major high net worth firm is going to eventually have some exposure to bitcoin or what’s like it.” JPMorgan’s analysts also said, “some investors that previously invested in gold ETFs, such as family offices, may be looking at bitcoin…