Markets
Galaxy Digital (GLXY) will benefit from improving political sentiment towards crypto in the US: Reference
Galaxy Digital (GLXY) is well-positioned to benefit from the resurgence in crypto markets, improving sentiment among US political leaders toward digital assets, and the potential for greater bitcoin adoption (BTC) and other cryptocurrencies, exchange Benchmark said in a research report on Tuesday.
Benchmark assumed coverage of the digital asset platform with a buy rating and a price target of C$19. Shares closed up more than 6% on Monday at C$14.76. The company has a “solid balance sheet with $1.5 billion in liquidity, trading relationships with 1,161 counterparties, and support from over 100 different crypto assets,” wrote analyst Mark Palmer.
Improving political sentiment toward crypto, as evidenced by the bipartisan passage of the Financial Innovation and Technology for the 21st Century (FIT21) Act last month, improves Galaxy’s U.S. operating prospects, but also increases the likelihood that the company will be able to list on Nasdaq, the report said.
The approval of 11 spot bitcoin exchange-traded funds (ETFs) in the US in January It was another big boost for the company, the note said, and will likely also see tailwinds from bitcoin price appreciation stemming from the recent halving event and increased institutional demand.
With institutional adoption of digital assets about to take off, “Galaxy is positioned to secure a significant share of this market opportunity with GalaxyOne,” the flagship brokerage business launched last November, Palmer wrote.
Galaxy also aims to become an SEC-registered exchange, which would put it in direct competition with Coinbase (COIN), the report added.