Galaxy Digital Sees ‘Substantial Wave’ of Capital Ready for Crypto Investments

The crypto merchant bank’s co-president spoke at Canaccord Genuity’s Digital Assets Symposium.

AccessTimeIconFeb 15, 2022 at 9:54 p.m. UTC
Updated May 11, 2023 at 4:03 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

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 global 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, who spoke at Canaccord Genuity’s Digital Assets Symposium on Tuesday. When regulatory issues become more settled, knowledgeable institutional investors will be ready to capitalize.
  • Vanderwilt said his conversations with investors suggest many are seeing the recent plunge in crypto prices as a buying opportunity. He said everything is connected these days, and leveraged hedge funds often need to lessen their exposure to crypto during equity market sell-offs.
  • 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 with estimates of global wealth of around $450 trillion, that means the total market cap of crypto, excluding venture capital, is only about 40 basis points of total global wealth.
  • Galaxy’s Toronto-listed stock gained 5.5% Tuesday amid a modest bounce in the price of bitcoin (BTC). For the year, Galaxy stock is lower by 24% as the sector has retreated.
  • Key Events You Shouldn't Miss at Consensus 2024
    02:13
    Key Events You Shouldn't Miss at Consensus 2024
  • What to Expect From Consensus 2024
    11:19
    What to Expect From Consensus 2024
  • Will Solana and Altcoins Dominate the Market Next?
    13:29
    Will Solana and Altcoins Dominate the Market Next?
  • What's Next for FIT21?
    07:15
    What's Next for FIT21?
  • Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Author placeholder image

    Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.