Galaxy Digital’s Q3 earnings reflect institutional enthusiasm for cryptomonics

Galaxy Digital recorded a record third quarter trading volume of $1.4 billion.

The Galaxy Digital OTC trading desk recorded record volumes in the third quarter, indicating once again that institutional adoption of digital assets is on the rise.

The company’s third quarter earnings report showed a 75% year-on-year increase in trading volumes, reaching approximately $1.4 billion. The increase was attributed to an expanding counterparty base, the launch of an electronic trading platform and the continued growth of Galaxy Digital’s crypto-derivatives business.

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Assets under management totalled $407.4 million at The News Spy the end of the third quarter, including $82.4 million in Bitcoin liabilities (BTC) and index funds and $325 million in the Galaxy EOS VC Fund. The latter is a partnership with commercial bank Blockchain, the founder of EOS.

The Galaxy Bitcoin funds increased by 17.3% in the third quarter. Its large-cap Crypto Index Fund yielded 32.3%. Even so, the company was unable to make a profit; its net loss was $44.6 million for the three months ended September 30.

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Galaxy Digital was founded in 2018 by billionaire Mike Novogratz in an effort to attract more institutional investors to digital assets. Novogratz said in today’s official press release that Galaxy Digital is preparing for „the incoming and clear wave of institutional adoption of digital assets and blockchain solutions by investors, corporations and governments.

While the 2017 bull market was largely driven by the retail FOMO, the fear of losing out, the euphoria surrounding Bitcoin in 2020 is largely related to institutional acceptance.

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There is evidence that institutional investors are flocking to Bitcoin in greater numbers in the fourth quarter. Bitcoin Trust in grayscale registered record entries in early November, setting it on track to reach 500,000 BTC by the end of 2020. That would be equivalent to approximately 2.7% of Bitcoin’s current supply.

Institutional investors such as Paul Tudor Jones and Stanley Druckenmiller also own Bitcoin. Both have promoted the growth potential of cryptomoney in the current macro environment.

The price of Bitcoin peaked at around $16,500 in the last 24 hours, according to TradingView data. It is still trading well above $16,000 at the time of writing.