Markets
Galaxy Digital (GLXY) to benefit from improving political sentiment towards crypto in the US: Reference
Galaxy Digital (GLXY) is well-positioned to benefit from the resurgence of crypto markets, U.S. political leaders’ improving confidence in digital assets, and the potential for increased bitcoin adoption. (BTC) and other cryptocurrencies, broker 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 CA$19. Shares closed up more than 6% on Monday at C$14.76. The company has a “strong balance sheet with $1.5 billion in liquidity, trading relationships with 1,161 counterparties, and support for 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 operational outlook in the United States, but also increases the likelihood that the company can be listed on a stock exchange. Nasdaq, according to the report.
Approval of 11 spot Bitcoin exchange-traded funds (ETFs) in the United States in January This is another major boost for the company, the note said, and it will likely also experience tailwinds related to Bitcoin price appreciation resulting from the recent halving event and the increased institutional demand.
With institutional adoption of digital assets poised to take off, “Galaxy is positioned to secure a significant share of this market opportunity with GalaxyOne,” the premier brokerage business it launched in November last, Palmer wrote.
Galaxy is also seeking to become an SEC-registered broker, which would put it in direct competition with Coinbase (COIN), the report added.