- Galaxy Digital’s net income rose 40%, with the same attributed to the impact of Bitcoin ETFs
- Galaxy Trading also saw an increase in turnover and volumes
Galaxy Digital Holdings Ltd. has become a major player in the financial field after a 40% increase in net profit to $422 million. Interestingly, analysts attribute this growth to the impact of spot Bitcoin [BTC] Exchange Traded Funds (ETFs).
In fact, the upward trajectory coincided with a notable resurgence in net inflows seen in spot Bitcoin ETFs on May 14, after four straight weeks of outflows. According to reports, there was a total inflow of $116.8 million last week, indicating renewed interest among investors.
Good day for Bitcoin
These inflows could also have had an impact on Bitcoin’s price action. After showing all the red numbers over the past week, Bitcoin was rebounding on the charts at the time of writing after rising 6% in 24 hours.
The same was confirmed as the Relative Strength Index rose close to the 50 level on the charts.
Analyst Joseph Vafi provided further insight into Galaxy Digital’s first quarter results:
“Spot bitcoin ETF approvals have been a key catalyst for the increase in counterparty involvement as some of the more traditional asset managers and hedge funds enter/re-enter the space.”
According to the company’s first quarter report,
“Trading reported counterparty trading revenue of $66 million, especially in the first quarter driven by higher derivatives revenues and favorable asset price movements.”
Galaxy Digital’s first quarterly report
The report further claimed that counterparty trading volumes increased by 78%, compared to the previous quarter. This while the average size of the loan portfolio increased to $664 million.
This underlines the increasing importance of platforms like Galaxy Trading in facilitating the exchange and investment in digital assets.
Additionally, Galaxy posted record Bitcoin mining revenue of $31.5 million, up 69% from the previous quarter.
Source: Alyssa Choo/X
Here it is worth noting that the company has mined 373 Bitcoins at an average cost of less than $19,500 per Bitcoin, highlighting the efficiency of its mining processes.
Mike Novogratz, CEO of Galaxy Digital Holdings Ltd, said the same:
“Our first quarter results underline the strength and resilience of our business model.”
In conclusion, although optimism prevails, market uncertainties remain unpredictable. However, the launch of the Invesco Galaxy Bitcoin ETF, along with two new XTrackers Exchange Traded Commodities in partnership with DWS Group, paints a promising path forward for the company.