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Galaxy Surpasses $10 Billion in AUM as Institutional Interest in Digital Assets Skyrockets

Ruholamin Haqshanas
Last updated: | 2 min read
Galaxy Surpasses $10 Billion in AUM

Galaxy Asset Management, a prominent crypto investment firm, has surpassed $10 billion in assets under management (AUM) amid a surge in institutional interest in digital assets. 

In a recent post on X, Galaxy Digital CEO Mike Novogratz said the company has made continuous progress in providing investor access to the expanding digital economy.

“Galaxy Asset Management has exceeded $10 billion in AUM for the first time ever, solidifying our position as a global leader in digital asset management,” he wrote. 

Galaxy Reports Over $10 Billion in AUM

According to a blog post from Galaxy Asset Management (GAM), the firm reported a preliminary AUM of $10.1 billion as of February 29, 2024.

Notably, the company experienced a 24.8% increase in assets during February, primarily driven by market appreciation. 

However, net outflows from an ongoing opportunistic mandate partially offset this growth.

GAM highlighted its impressive AUM growth over the past year, more than tripling its assets. 

The firm attributed the increased AUM to a diverse range of investment strategies, including over a dozen passive, active, and venture approaches. 

Notably, the recently launched Invesco Galaxy Bitcoin ETF (BTCO) has also contributed to this growth.

While BTCO is part of the digital asset offerings, it has experienced relatively lower inflows compared to its competitors since its launch. 

According to Farside Investors, the fund has recorded inflows of $175 million to date. 

Only the Franklin Bitcoin ETF (EZBC) and the WisdomTree Bitcoin Fund (BTCW), launched in mid-January, have seen lower inflows.

Invesco Galaxy is also vying for approval of a spot Ethereum ETF application, but the decision was delayed in early February. 

The final deadline for approval or rejection of the application is set for July 5.

Galaxy Continues to Expand

In 2023, Galaxy Asset Management was appointed by the FTX estate to assist with the selling, staking, and hedging of its crypto holdings. 

Galaxy Asset Management serves as the institutional investment division of Galaxy Digital Holdings, which encompasses Global Markets and Digital Infrastructure Solutions. 

Steve Kurz leads the division as the Global Head of GAM, which was established in 2018.

Despite a 4% decline in Galaxy Digital stock (GLXY) to $12.80 in after-hours trading, the shares have gained 23.5% since the beginning of the year. 

The majority of these gains followed the approval of spot Bitcoin ETFs in mid-January. 

However, the stock remains nearly 70% lower than its all-time high of $40 during the previous crypto market peak in November 2021.

More recently, Galaxy Asset Management’s global head Steve Kurz said he expects top wirehouses to increase their involvement in spot Bitcoin ETFs within the next year.

“I’d be surprised in the next year if the top 10 wirehouses are not involved in this… We will probably see institutional FOMO,” he told FOX Business on February 19 during the Exchange ETF Conference in Miami Beach, Florida.

The statement came as companies offering spot Bitcoin ETFs have been inundated with queries from financial advisers during the event.