Galaxy’s Assets Under Management Surpass $10 Billion Amid Growing Investor Interest in Cryptocurrency

Galaxy Asset Management, led by Mike Novogratz, has achieved a significant milestone, surpassing $10 billion in assets under management (AUM) for the first time. This achievement is primarily attributed to a surge in institutional interest in digital assets, marking a significant step in enabling broader investor access to the evolving digital economy.

According to a recent announcement by Novogratz on X, this milestone reflects the continuous advancement in providing investors with opportunities within the digital economy.

In a blog post updated on March 18, Galaxy Asset Management revealed a preliminary AUM figure of $10.1 billion as of February 29, 2024. The firm experienced a notable 24.8% increase in assets in February, mainly driven by market appreciation, although partially offset by net outflows from specific investment mandates.

Galaxy Asset Management has witnessed an impressive growth trajectory, more than tripling its AUM over the past year, a testament to the burgeoning institutional interest in digital assets.

The firm attributes its AUM growth to a diverse range of investment strategies, including passive, active, and venture approaches. Notably, the recently launched Invesco Galaxy Bitcoin ETF (BTCO) has contributed to this growth, although it has seen relatively lower inflows compared to its counterparts.

Furthermore, Invesco Galaxy is actively pursuing approval for a spot Ether exchange-traded fund (ETF), with a decision expected by July 5 after a delay in early February.

In addition to its investment activities, Galaxy Digital Holdings has been engaged by the FTX estate to manage the sale, staking, and hedging of its crypto holdings, further contributing to the firm’s AUM growth.

Galaxy Asset Management, established in 2018 and led by global head Steve Kurz, forms part of Galaxy Digital Holdings, which also includes Global Markets and Digital Infrastructure Solutions.

Despite closing down 4% in after-hours trading at $12.80, Galaxy Digital stock (GLXY) has gained 23.5% since the beginning of the year, primarily driven by the approval of spot Bitcoin ETFs in mid-January. However, it remains significantly below its all-time high of $40 during the previous crypto market peak in November 2021.