Category Archives: Galaxy Digital

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Galaxy Digital Down 70% Since Launch, Halts Trade After 18.6% 2-Hour Plunge

The stocks of Galaxy Digital Holdings Ltd, a major cryptocurrency-oriented hedge fund owned by billionaire Mike Novogratz, has declined from a listing price of USD 3.03 to USD 0.90 as of today, 28 November.

Yesterday, 27 November, was a particularly harsh day for GLXY, with an 18.6% drop in less than two hours, which caused the Toronto Stock Exchange (TSX) to temporarily suspend the trading of GLXY. The fund went public on TSX under the ticker GLXY on 1 August 2018.

A press release was issued by Galaxy Digital following the trading suspension, asserting that nothing happened in the company internally to cause the trading halt. TSX is overseen by the IIROC, which has the power to halt trading on any stock in Canada to ensure a fair and orderly market.

Bitcoin was at USD 8,000 on 1 August when GLXY went live for trading, and has since then declined to about the USD 4,000 level, likely causing heavy losses for any cryptocurrency hedge fund. The alternative cryptocurrency markets have faired even worse, with the total crypto market cap declining from USD 273 billion on 1 August to USD 115 billion on 25 November. Galaxy Digital is known to have invested hundreds of millions of US dollars into cryptocurrency startup companies, just as market conditions for startups rapidly worsened. Particularly, Galaxy Digital invested USD 325 million into the EOS ecosystem, a cryptocurrency which has seen steady and sharp declines since the day it moved to its own blockchain.

GLXY now has a market cap of USD 57 million and since Galaxy Digital is likely classified as a technology company, this is dangerously close to the CAD 50 million minimum listing requirement for TSX.

 

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Brian Kelly: Crypto Set for Institutional Investment Bull Run in 2019

CNBC’s Brian Kelly sees the arrival of industry names setting up crypto subsidiaries, as “fantastic news” which should encourage institutional investments to take off in the new year.

He was specifically referring to news this week that Boston based Fidelity Investments, the fourth largest asset manager with $7.2 trillion in assets under administration, was moving into crypto, offering custody and trading solutions to its clients.

The creation of the company subsidiary Fidelity Digital Asset Services (FDAS), is in Kelly’s view another positive in terms of attracting institutional crypto investment, a factor that, as he has argued for a long time, could start another crypto bull run similar to that of 2017, a view also held by Galaxy Digital’s Mike Novogratz.

The news that major US universities are all raising their cryptocurrency profiles has Kelly proposing that mainstream brokers could easily be brought into the fray in the new year, once the word is out that cryptocurrency is becoming an institutional drawcard. On CNBC he stated:

“Soon. I think very soon. It wouldn’t surprise me to see a lot of those companies have something working in the background by Q1 of 2019. I mean if you’re looking at this, there are a couple things you need to think of. Fidelity is in this space. Also, remember that startups like Robinhood launched a crypto app and got a million users in four days. So if you are at Schwab or you’re at E*Trade, then you may start to look at that and say, “Where are the customers?” And they’re in crypto, so you gotta offer that product.”

Kelly and Novogratz are not the only ones in the market that feel that “institutional FOMO,” should be the catalyst behind the cryptocurrency market’s next bull run, hence all eyes on the SEC and their net move; the addition of yet another major player to the growing cryptocurrency institutional family network is in their eyes no bad thing.

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Crypto Hedge Fund to Go Public on Toronto Stock Exchange

Crypto hedge fund Galaxy Digital, owned by billionaire cryptocurrency enthusiast Mike Novogratz, is going to be listed on the TSX Venture Exchange in Toronto, Canada on 1 August 2018. This will make Galaxy Digital a publicly tradeable company, and its shares will now be easy to buy and sell on any major stock trading platform. This is a major milestone for the crypto space since it provides an easy and regulated way for institutional investors to invest in cryptocurrency.

Apparently, it has taken eight months for Galaxy Digital to achieve this public listing, meeting demands from Canadian regulators. Galaxy Digital had to conduct a reverse takeover of a company already listed on the TSX exchange to get listed, a tactic previously used by cryptocurrency mining companies and marijuana businesses. The stock will have the GLXY ticker and its business name is Galaxy Digital Holdings Ltd.

Mike Novogratz aims to have Galaxy Digital listed worldwide and is looking into listings in Frankfurt, London, Hong Kong, and eventually the US. Apparently, a USA initial public offering requires two years of audited financial statements, which is something Galaxy Digital won’t have for years. Regardless, now that Galaxy Digital is listed on TSX, investors worldwide can buy and sell shares of GLXY.

Galaxy Digital is investing hundreds of millions of dollars into the crypto space, with a focus on institutional investment infrastructure like custodians and properly regulated exchanges. Now that the possibility of a Bitcoin exchange traded fund (ETF) appears to have been pushed off by the Securities and Exchange Commission of the United States, the GLXY stock might be one of the best ways for institutional investors to invest in crypto, although it is an indirect way.

 

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Institutional Crypto: The Peoples Revolution, Says Michael Novogratz

Institutional investors were the initial topic of conversation during Michael Novogratz’s address at the Fluidity Summit in Williamsburg, Brooklyn on Thursday, when he told his audience that crypto had been… “a peoples revolution.”

Galaxy Digital’s Michael Novogratz, ex-Goldman Sachs partner, was at the venue to talk about cryptocurrencies after the dramatic price hike of 2017. Addressing the audience from notes scribbled on the back of a paper plate, he commented, “We have never had a market mania led by retail before.”

The former principal at Fortress Investment Group LLC spoke of the recent launch of his latest project, the Bloomberg Galaxy Crypto Index, which tracks the most liquid assets trading on blockchain:

“I’m hoping yesterday marks the beginning of the institutionalization of crypto as an asset class… big problems need big capital.”

He made the point that decentralized “revolution” is yet to make its most significant impact on markets. Novogratz explained that street level is where new technology will flourish where regular people do things like “rent rooms, ride cars and pay each other to do work,” Coindesk reported.

The entrepreneur talked of “three superhighways” to move decentralization forward, the first being computer science: “We have a bet on EOS because I think people like speed and convenience. We also have a bet on Ethereum, because it has the most developers…My intuition is: we don’t need 100 blockchains.”

He described the second key area as being the token economy, explaining that he felt that investors hadn’t thought deeply enough about ICOs and how they work, and if they actually have value, suggesting there must be a reason to hang on to a token, rather than just speculative investment. He cited ridesharing as an example of a how a coin can grow in value through company productiveness and user interest.

Reflecting on his third “superhighway,” Novogratz, said he prays every night that established players join the “custody game” to push the crypto industry forward, claiming, “The institutional herd is on the move.”

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