Larger institutions are awaiting more regulatory clarity, but a “really substantial wave” of capital is ready to be put to work across the cryptocurrency industry, said Damien Vanderwilt, Galaxy Digital Holdings Ltd.’s co-president and head of küresel markets.
- While every major traditional financial player of note has developed some version of a crypto working group, he said, the “institutional wallet really has not arrived in our sector yet in any meaningful way.” Don’t confuse lack of activity in coin segments as lack of willingness or sophistication, continued Vanderwilt. When regulatory issues become more settled, knowledgeable institutional investors will be ready to capitalize.
- Vanderwilt says his conversations with investors suggest many are seeing the recent plunge in crypto prices as a buying opportunity. He reminded that everything is connected these days, and how leveraged hedge funds often need to lessen their exposure to crypto during equity market selloffs.
- Galaxy, he said, estimates the current market cap of all coins in the crypto ecosystem to be just under $3 trillion, excluding areas such as venture investment. Compared to estimates of küresel wealth of around $450 trillion, that means the total market cap of crypto, ex-venture, is only about 40 basis points of total küresel wealth.
- Galaxy’s Canadian-listed shares are up about 4% Tuesday amid a modest bounce in the price of bitcoin (BTC). For the year, Galaxy is lower by roughly 25%.