|Bid||1.5500 x 0|
|Ask||1.7000 x 0|
|Day's Range||1.5800 - 1.7200|
|52 Week Range||0.5600 - 2.4400|
|Beta (5Y Monthly)||0.99|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
(Bloomberg) -- Mike Novogratz’s Galaxy Digital Holdings Ltd. is partnering with Intercontinental Exchange Inc.’s Bakkt unit to offer “white-glove” service for large asset managers looking to buy and store Bitcoin.“We are talking about multi-billion-dollar asset managers from traditional finance that we are really targeting with this,” Tim Plakas, head of sales at New York-based Galaxy’s over-the-counter trading desk, Galaxy Digital Trading, said in a phone interview.In the last three months, interest from asset managers in Bitcoin as a store of value has spiked, largely the result of the economic uncertainty caused by the Covid-19 pandemic, Plakas said. Hedge fund manager Paul Tudor Jones said that he is holding some Bitcoin, adding fuel to the fire. Demand on the CME Group’s derivatives exchange has been surging, he said.“This partnership that we put in place was really in response to demand we’ve been seeing in the last three months from institutions with a capital ‘I,’” said John Conneely, head of custody business development at Bakkt, the crypto trading platform majority owned by ICE, which also owns the New York Stock Exchange. The companies declined to name customers.While it’s highly volatile, and crashed badly in mid-March, the world’s largest cryptocurrency Bitcoin is up nearly 33% since the beginning of the year. Still, it’s a risky bet, and in May, Goldman Sachs Group Inc. said it doesn’t consider Bitcoin an asset class it would recommend investors get into.“To be honest, different views exist in any market, that’s what makes the market,” Plakas said.With the Galaxy-Bakkt partnership, institutional customers will only have to go through signup once to work with both firms. And both partners can jump on a call with a client at the same time, answering questions or following trade directives.“These sort of participants expect someone 24 hours a day in a Bloomberg chat, or real phones to ring, and they expect someone to pick up,” Plakas said. Galaxy is an investor in Bakkt, and the two companies have collaborated for months, but their services are now more integrated. The partnership is non-exclusive.Galaxy runs an over-the-counter trading desk which can help funds make large trades, and it handled more than $1 billion in trading volume in the first quarter. Bakkt’s custody business safeguards cryptocurrency for more than 70 institutional clients. Bakkt also runs a derivatives exchange.The announcement comes amid a rush of companies -- including BitGo and Genesis -- adding new capabilities in order to be known as crypto’s prime brokers, offering a safe, regulated way for institutional clients to wade into this market.“In the digital-asset space there’s a large push toward offering prime brokerage services that don’t exist in a very mature way,” Plakas said. “These are sort of things that we think about as a firm in terms of the partnerships we develop and offerings that start to go down the prime brokerage-like route.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly...
(Bloomberg) -- Michael Novogratz is a step closer toward his vision of making Galaxy Digital Holdings Ltd. the Goldman Sachs of cryptocurrencies.The former macro manager’s self-styled merchant bank noted its approval from the Financial Industry Regulatory Authority to underwrite registered public offerings of securities in a filing last week. The New York-based firm is also looking at shepherding security token offerings -- effectively, digitized IPOs.“It’s a really young industry, and we are a pretty young business,” Novogratz said in a phone interview. “We are sober and patient about how fast it will grow, and we are well capitalized. This feels like a perfect addition.”Galaxy already invests in start-ups and coins, and helps companies secure funding for everything from early- to later-stage rounds. Galaxy managed $390 million in assets as of July 31.Novogratz, 54, is a former Goldman Sachs Group Inc. partner who spent more than a decade at the New York-based bank. He later became a principal at Fortress Investment Group LLC and managed the Fortress Macro Fund before it was liquidated in 2015. He launched Galaxy in January 2018 during the height of the crypto bubble.The company’s advisory business is headed by Ian Taylor, who worked at Goldman Sachs for 18 years before joining Galaxy in December. The Australia native is now leading a team of eight -- up from three employees in December -- with backgrounds in investment banking, consulting and structured finance.Business could take several years to ramp up, but there are plenty of hopeful signs that IPO demand could be coming: A number of crypto exchanges like Coinbase Inc. have raised money at valuations in the billions, and companies like mining hardware giant Bitmain Technologies Ltd. are already planning IPOs. Many major exchanges, mining and chip businesses are generating real revenue and profits.“The business that we are building on the advisory side is a long-term, relationship-based business,” Taylor said. “In time that will pay dividends as financing and strategic advisory opportunities arise.”Galaxy is already working on finding financing for a Bitcoin mining data center to be located in the U.S., for example, Taylor said.Mergers-and-acquisitions advising could be poised to take off as well. Traditional companies like card network Mastercard Inc. and PayPal Holdings Inc. have joined the Libra Association, a Facebook Inc.-led effort to issue a new digital coin for payments -- and such companies may look to acquire crypto businesses at some point as well. Due to political and regulatory scrutiny, Novogratz pegs Libra’s chances of launching next year at 50%.“Ultimately, we want to be a big part of the crypto ecosystem, and if they are there we want to be a big part of that,” Novogratz said, adding that he is also investing in and advising alternative platforms that would allow for Libra-like coins.Eventually, Galaxy also wants to issue tokens that could connect to or represent ownership of many valuable objects and revenue streams, Novogratz said.“The key here is regulators have been a little slower than we want them to be, but I think they are heading in the right direction,” Novogratz said. “There are a lot of interesting projects, but nothing has happened yet on the ’tokenization of everything’ front.”While some traditional investment banks could join the fray by that time, Novogratz hopes to enjoy a first-mover advantage -- and an advantage of someone focused on crypto from day one.“The traditional banks don’t have the DNA that they really need to understand the crypto community yet,” Novogratz said. “Our edge over time is that we are going to see more projects and get an understanding of what works and what doesn’t.”\--With assistance from Ben Bain.To contact the reporter on this story: Olga Kharif in Portland at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Dave Liedtka, Brendan WalshFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- The notion that more people are trading cryptocurrencies? Well, it just may be wrong.Fewer people have been sending Bitcoin to major exchanges in recent months, according to crypto data tracker TokenAnalyst. After peaking in 2017, the number of unique addresses sending the world’s most-popular cryptocurrency to exchanges such as Binance and Bitfinex has been declining, it found.The number of addresses sending the token to the Bitfinex trading platform is at a two-year low, while the amount on Malta-based Binance -- the world’s largest crypto exchange by volume -- dropped to early 2018 levels, according to TokenAnalyst.That signals a “lack of retail interest in general currently in crypto,” said Sid Shekhar, co-founder of London-based TokenAnalyst. “If we go by the ‘Bitcoin as safe haven in times of recession’ narrative, the number of new users/buyers should actually be increasing.”Other data point in the same direction. Bitcoin exchange trade volume in U.S. dollars is at its lowest point since May, and has been trending down since peaking in 2017, according to Blockchain.com. Web traffic to Binance and Hong Kong-based Bitfinex is at a four-month low, according to tracker SimilarWeb.That said, crypto user data is difficult to monitor due to the anonymous nature of the ownership of the assets. Bitcoin on-chain transaction activity has nearly quadrupled this year, peaking in July following a price rally ended in June, according to tracking service Chainalysis.Faced with fewer active traders, exchanges -- which make the bulk of their money off of transaction fees -- are increasingly catering to power users. Only about 11% of all crypto holders were sending coins to someone -- as a trade or a payment -- once or twice a week last year, according to a Foundation of Interwallet Operability survey of more than 200 users released in February.To increase user loyalty and the amount of fees they can charge, a number of exchanges, such as Binance and Bitfinex, have rolled out or expanded availability of margin trading, letting users borrow funds to speculate. Binance began user testing its futures products this month, after allowing traders to lend out their funds to others in August.“The more products you offer, the more sticky your client,” said Jeff Dorman, chief investment officer at Arca, a Los Angeles-based asset manager that invests in cryptocurrencies. “All consumers prefer a ‘one-stop shop.’”Binance and Bitfinex officials didn’t immediately return requests for comment.The user growth crunch is also seen pushing some of the 200-plus crypto exchanges toward consolidation.“The whole exchange landscape is very much fragmented,” Ian Taylor, head of advisory services at Galaxy Digital Holdings Ltd., said in a phone interview. “There’s been a lot of exchange platforms launched in the last 6-12 months, all offering slightly varying sets of services. What I’d expect to see over time is some sort of consolidation to bolster user growth.”To contact the reporter on this story: Olga Kharif in Portland at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Dave Liedtka, Rita NazarethFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.