By the end of next year, there will be more millionaires and more cryptocurrency investors and users.
Ex-Goldman Sachs partner, now Galaxy Digital founder Mike Novogratz announced his expectations regarding the cryptocurrency’s reversal next year. He is optimistic that his new company will turn into “the Goldman Sachs of crypto” while stating that it is disappointing to establish a business in a market where security commodity prices fall down. He also predicted that digital currencies will turn over next year when prices start to move upwards again.
“It won’t go there ($20 trillion) right away. What is going to happen is, one of these intrepid pension funds, somebody who is a market leader, is going to say, you know what? We’ve got custody, Goldman Sachs is involved, Bloomberg has an index I can track my performance against, and they’re going to buy. And all of the sudden, the second guy buys. The same FOMO that you saw in retail [will be] demonstrated by institutional investors”. The same FOMO that you saw in retail [will be] demonstrated by institutional investors,” Novogratz noted.
He added that “it’s effortless to get doubtful but there is something going on” with an indication to various changes in the cryptocurrency market which has been pioneered by leading people in traditional finance. The Galaxy Digital founder cited Bakkt Bitcoin (USD) Daily Futures Contract’s launching postponed by the New York Stock Exchange and was moved to next year.
Galaxy Digital registered losses of $134M in this year’s first quarter. The company is held down by $85.5M in probable losses on digital assets and $13.5M in losses in its trading business. In the second quarter, however, it generated $35M in net income while losses at its trading arm declined to £1.1M.
The company provides advisory services from merging and acquisitions and capital raising support to crypto companies. It also directly capitalizes in crypto businesses like exchanges with its major investing division. Lately, it likewise builds up a trading arm fortifying its asset management division with almost $460M in equity under management.
It invested in three companies since the start of October. These companies include blockchain gaming firm, Mythical Games and digital currency wallet, BitGo. Galaxy Digital also declared a “rearranging” of its advisory business to drift away from considering smaller start-ups to benefiting large and institutional clients. Part of the plan is to close its Vancouver office while hiring more employees in New York. According to a source who wished not to be named, US regulators have subpoenaed the advisory business which lately rounded the sector.