Galaxy Digital Positioned to Thrive Amid Positive Crypto Sentiment and Regulatory Advances
In a recent report, Benchmark has initiated coverage of Galaxy Digital (GLXY), a digital assets platform, with a buy rating and a price target of C$19. The shares saw an over 6% increase on Monday, closing at C$14.76.
Benchmark highlighted that Galaxy Digital is set to benefit significantly from the improving political sentiment towards cryptocurrencies. The approval of spot Bitcoin ETFs in January has provided a substantial boost to the company, enhancing its market position and growth potential.
The research report underscored Galaxy Digital’s strong financial health, with a solid balance sheet featuring $1.5 billion in liquidity. The company maintains trading relationships with 1,161 counterparties and supports more than 100 different crypto assets, according to analyst Mark Palmer.
Galaxy Digital’s prospects have been further brightened by the bipartisan passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) last month. This legislative progress not only enhances Galaxy’s operational outlook in the U.S. but also increases the likelihood of the company listing on Nasdaq.
The approval of 11 spot Bitcoin exchange-traded funds (ETFs) in the U.S. in January represents another significant milestone for Galaxy Digital. The company is expected to benefit from the recent Bitcoin halving event and the anticipated increase in institutional demand for digital assets.
With institutional adoption of digital assets on the rise, Galaxy Digital is well-positioned to capture a substantial share of this emerging market through its prime brokerage business, GalaxyOne, launched in November last year. Additionally, the company is seeking to become an SEC-registered broker-dealer, which would place it in direct competition with Coinbase (COIN).
In summary, Benchmark’s positive outlook on Galaxy Digital is driven by the company’s strategic positioning, strong financials, and the favorable regulatory environment for digital assets, making it a compelling buy at the target price of C$19.
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