Digital asset financial services firm Galaxy Digital’s (GLXY) results showed significant sequential growth across its three operating units, driven by improved crypto market conditions in anticipation of the approval of spot bitcoin (BTC) exchange-traded funds (ETFs), a Stifel Canada analyst said in a research report on Tuesday.

“As a result, strong performance has followed into the current quarter as spot prices, volumes and volatility remain elevated in Q1/24, while the ETF launch approvals help open the door to new pools of capital,” wrote analyst Bill Papanastasiou.

Stifel has a buy rating on the Toronto-listed company headed by Mike Novogratz with a C$20 price target. The stock was trading 5% lower at around C$13.67 at the time of publication. The shares have risen over 30% year-to-date.

The crypto firm should be a “core holding for equity investors seeking exposure to the broad digital asset ecosystem given the attractive asymmetric return profile across a diverse group of revenue-producing operating segments and longer-term outsized growth potential through its infrastructure solutions arm,” the report said.

Galaxy is expected to perform strongly for the full year 2024, given improved crypto market sentiment following the Securities and Exchange Commission’s (SEC) approval of spot bitcoin ETFs as well as several other tailwinds, the report added.

Read more: Galaxy Digital Reports 2023 Net Income of $296M Following Year-Earlier $1B Loss