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Invesco Partners with Mike Novogratz’s Galaxy Digital to Rollout Suite of Crypto ETFs

Invesco Ltd., a major operator of exchange-traded funds in the U.S., is preparing to launch a suite of exchange-traded funds (ETFs) backed by cryptocurrencies.

Invesco, an investment management firm based in Atlanta, is partnering with Mike Novogratz’s Galaxy Digital Holdings Ltd. to rollout U.S.-listed ETFs that hold and track the performance of Bitcoin and other cryptocurrencies that trade like stocks.

The Atlanta-based asset manager wants to capitalize on the consumers’ rising interest in digital assets. One of the first crypto ETFs that Invesco plans to launch under the partnership is Bitcoin-backed ETF, which Galaxy initially proposed in April.

Invesco, which manages $1.5 trillion in assets globally, including about $470 billion in indexed strategies and ETFs, disclosed the partnership on Wednesday, September 22.

Galaxy, which has $2.1 billion in assets under management, had filed for a US ETF that would invest directly in Bitcoin in April. But on Tuesday, September 21, Galaxy revised the ETF’s filing with the SEC to make Invesco the sponsor for the proposed fund.

Jn June, Invesco had filed with the SEC to launch a Crypto Economy ETF that seeks to invest mainly in cryptocurrency firms and up to 10% in Bitcoin futures. The planned fund intends to track the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Index.

Last month, Invesco also filed with the SEC to bring to market a Bitcoin strategy offering that would invest most or all of its assets in Bitcoin futures contracts traded on the CME (Chicago Mercantile Exchange).

John Hoffman, head of Americas, ETFs and indexed strategies at Invesco, talked about the partnership with Galaxy and said: “When we partner, we always look to work with best in class, subject matter experts, and Galaxy has to experience across all verticals of digital assets. We are aligned on a common vision, and most importantly, a path focused on education to help investors safely navigate this new technology.”

Sumit Roy, a crypto editor and analyst of ETF.com, also talked about the partnership. Roy said that if the SEC approves the deal, then Invesco and Galaxy will launch products tied to all of the most cryptocurrencies – Bitcoin, ether, Solana, etc., as well as index products.

Meanwhile, Galaxy CEO Mike Novogratz stated on Wednesday during the Mainnet 2021 conference in New York that he is unsure when SEC chairman Gary Gensler will decide to approve the EFTs. Still, he said that there would be equity EFTs with all different public stocks and other products when the SEC will give the greenlights.

Race to Launch Bitcoin ETFs

Invesco is partnering with Galaxy to create a suite of physically-backed digital assets ETFs amid the current regulatory uncertainty around such products in the U.S.

The development is resurfacing when the US SEC approves an ETF to hold digital assets and track their price tags.

It has been eight years since the Winklevoss twins first attempted to obtain approval with the SEC for a Bitcoin ETF.

More than 18 asset management firms have jumped abroad with their filings this year, but the U.S. securities regulator has approved none. And it is unlikely that a physical Bitcoin ETF will be approved this year.

However, SEC boss Gary Gensler recently signalled that he would be more open to considering a futures-based Bitcoin ETF under strict rules.

Galaxy Digital Looks to Complete BitGo Acquisition, US Listing by Q1 2022

American digital currency service provider, Galaxy Digital, says it is on track to complete its acquisition of BitGo by the first quarter of 2022.

The company’s CEO, Mike Novogratz, revealed this in a statement that borders on the company’s performance report for the third quarter, adding that the forthcoming U.S. listing is also on track to be finalized within the same time frame.

The company reported an increase of 1,146% to $517 million in its net comprehensive income, up from the $41.5 million recorded in the same time period last year. The New York-based firm reported an increase across all of its business segments and said it grew its investments to $779.9 million as of September 30, 2021, an increase of $519.5 million from December 31, 2020.

Novogratz said the company expects to “our U.S. listing and the close of our BitGo acquisition, which we now expect will occur in the first quarter of 2022”:

“Our organic growth demonstrates our continued ability to capitalize on opportunities, with our net comprehensive income growing to $517 million from a net comprehensive income of $41.5 million in the prior-year period. Year-to-date through November 12th, we have provided shareholders with approximately $1.6 billion in net comprehensive income, on the back of our strong operational and investment portfolio growth. ”

The impressive performance of Galaxy Digital mimics those of other prominent Blockchain and crypto-focused firms, as many outfits capitalized on the surging interest in cryptocurrencies across the board. As reported by Blockchain.News, payment giant Square released its third-quarter financial report, showing that the mobile payment application Cash App under Square achieved $1.82 billion in Bitcoin revenue.

This year, the cryptocurrency ecosystem received a massive rejuvenation, with many cryptocurrencies printing new All-Time Highs (ATHs). Companies like Galaxy Digital rode along with the tide, turning good profits for their investors on all grounds.

Crypto Firm Galaxy Digital Postpones US Public Listing Until 2022

Galaxy Digital Holdings, a cryptocurrency investment management firm run by billionaire Mike Novogratz, will not be going public in the US during the last quarter of 2021 as it was initially planned.

The New York-based financial services and investment management company announced that it postponed current plans for a US listing but instead will go public in the first quarter of 2022.

Novogratz, who is the founder and CEO of Galaxy Digital Holdings, made the announcement on November 15 but did not specify the reason behind the delay in plans.

“We look forward to our U.S. listing and the close of our BitGo acquisition, which we now expect will occur in the first quarter of 2022,” he said.

Galaxy Digital is still in the process of completing the acquisition of BitGo crypto custodian firm after initiating a purchase earlier this year. The firm purchased BitGo for $1.2 billion in cash and stock in May. Galaxy now expects to close the acquisition in the first three months of 2022.

While Galaxy officially announced the firm’s plans for a US listing in May this year, so far it has not received approval for potential listing on a US stock exchange from the US Securities and Exchange Commission.

Galaxy, one of the largest crypto investment firms in the world, has been trading on a major Toronto stock exchange since August 2018. The firm debuted its first-ever listing on Toronto’s TSX Venture exchange in August 2018 after merging with a local crypto startup Coin Capital Investment Management Inc via a reverse takeover.

The announcement regarding the forthcoming US public listing came as Galaxy reported financial results for its third quarter that ended in September. The company’s net comprehensive incomes rose to $517 million from $42 million in the same period last year as its crypto holdings appreciated.

As of September 30, Galaxy held about $555.2 million of Bitcoin and $261.4 million of Ether. According to the financial results, the firm is currently managing around $3.2 billion in assets as of October.

Novogratz talked about the outstanding performance and said that the company’s organic growth demonstrates its continued ability to capitalize on opportunities.

Helping Institutions Access Crypto

Quite a few public companies are looking to invest in crypto assets like Bitcoin. The top three public companies that have invested heavily in cryptocurrencies include MicroStrategy, Tesla, and Galaxy Digital Holdings.

Galaxy Digital Holdings, headquartered in New York, offers a compelling play on increasing institutional adoption of digital assets. The firm provides clients with liquidity access on a principal basis to different centralized exchanges and OTC markets.

Galaxy aims to become a merchant bank and prime brokerage platform, a sort of ‘Goldman Sachs of cryptocurrency banking.’

The transformation of such a trading platform would be aided by the firm’s 1.2 billion acquisition of BitGo announced in May.

BitGo, an independently regulated custodian for digital assets, would provide Galaxy with a key piece of infrastructure required for it (Galaxy) to become a one-stop crypto shop for institutional investors. BitGo would provide a cross-selling opportunity to Galaxy with a combined client base of 700 institutions.

Time Magazine to Add Ether to Its Balance Sheet as Part of Efforts to Support Metaverse Newsletter with Galaxy Digital

Time Magazine will hold Ether (ETH) on its balance sheet for the first time as part of a deal with crypto investment firm Galaxy Digital to educate its readers about the metaverse.

The 98-year old publication announced on Thursday, November 18, that it has partnered with the crypto company as part of efforts to explore the metaverse, to educate and engage as many people as possible about the emerging technology.

Mike Novogratz, CEO and Founder of Galaxy Digital, talked about the development and said: “Over the next decade, the metaverse will become an increasingly important part of the world economy; our physical and digital realities are already becoming hard to distinguish. We look forward to partnering with Time, an iconic brand driving innovation, as we seek to bring readers, creators, and the curious into the metaverse and demystify the tremendous amount of transformation happening within.”

The popular magazine-based in New York will be releasing a weekly newsletter focused on metaverse, compiling a Time 100 companies list for metaverse-related firms and feature educational resources on a new section of its publication, and including the virtual space as a category in its annual list of the 100 most influential people in the world.

Galaxy Digital will offer its expertise to help explain the metaverse and its potential, like taking advantage of insights from Galaxy Interactive General Partners Richard Kim and Sam Englebardt.

The list will highlight firms with the most impact within the metaverse space, some of which may include blockchain firms, while others could be offering solutions to make experiences within the metaverse more successful, impactful or accessible for businesses and consumers.

Time magazine stated that the deal is the first of this nature among media companies. Although financial terms were not disclosed, Time’ company representatives revealed that the deal would run for about six months.

Apart from that, Time magazine mentioned that the partnership with Galaxy digital was conducted using Ether (ETH), which the media company plans to hold on its balance sheet. Since April, the publication has been holding Bitcoin as part of its partnership with crypto investment firm Grayscale.

The Rise of Metaverse

The metaverse is being touted as a better version of the internet, featuring a virtual world for immersive experiences where people across the globe can meet, watch, play, and trade.

As reported by Blockchain.News in late October, interest in metaverse soared after Facebook announced a change of its name to “Meta Platforms Inc.” The social media giant retired its former name “Facebook” because it believes that it only represents a single product. “Meta”, the prefix of the word “Metaverse”, involves the concept of shared virtual worlds and communities, which is the branding Facebook hopes to capture.

Microsoft Inc is also dabbling in the metaverse. It recently introduced Mesh for Team, a virtual workplace.

As a result, other major firms are also shifting their focus in the internet’s next iteration.

Galaxy Digital appears to be focusing on expanding into the metaverse. In October, the firm raised a $325 million fundraising round aimed at virtual endeavours.

Staking Rewards Raises $3.2M Equity from Crypto's Largest Funds Ecosystem

Crypto data aggregation startup, Staking Rewards says it has raised $3.2 million from the biggest fund managers in the cryptocurrency ecosystem.

The funding round was led by Galaxy Digital, CoinShares, and Digital Currency Group with participation from 1kx Capital and Sygnal Ventures, along with angel investors including early CoinMarketCap team members, and the crypto asset advisory firm NxGen.

Staking Rewards currently offers more than 400,000 users all over the world comprehensive data about Proof-of-Stake (PoS) platforms or other yield-generating protocols in the digital currency ecosystem. While there are prominent market research and aggregation protocols, Staking Rewards comes off as a pioneer in the PoS ecosystem.

According to the startup’s founder and Chief Executive Officer, Mirko Schmiedl, the new funding will be deployed to power the protocol’s innovative product development.

“The new investment will fuel our growth and positioning as the trusted data hub for the $40 billion staking industry. The capital will allow us to develop a new suite of products and services catering to the staking space, including the development of investable staking index products,” he said in the official statement.

As unveiled by the firm, the staking products that will be developed are on track to be integrated by its core investors, some of which offer index funds already, giving the products a ready market.

Modelling a growing trend in the cryptocurrency industry, the funding round was oversubscribed 6x as investors are notably impressed with the growth of the startup which has grown its staff strength from a team of 4 to 15. CEO Mirko also detailed plans to deploy the funds into hiring new staff by Q1 2022. The pioneering role in offering profitable earning options to investors has been highlighted as one of the key factors that have endeared investors to the platform.

“One of crypto’s strongest adoption drivers will be passive income opportunities and Staking Rewards is perfectly positioned to capture a large market of those,” said Christopher Heyman, Partner, 1kx Capital.

Polish Crypto Payments Firm Ramp Network Raises $52.7M in Series A Funding

Ramp Network, a Polish-born crypto payments service provider has concluded its Series A funding round, attracting high-profile investors who pumped $52.7 million into the startup.

As reported by Sifted, the funding round was led by Balderton Capital, and also enjoined participation from existing investors including NFX, Galaxy Digital, Seedcamp, and Firstminute Capital, as well as angels Taavet Hinrikus from Wise and TrueLayer’s Francesco Simoneschi. It’s an impressive roster of investors.

Funding for Protocol Development

Ramp facilitates payment for businesses looking for ways to tag along with the evolution in the digital currency ecosystem. The startup eases the ease of entry for platforms that would have otherwise spent a lot of money and time developing their own payment infrastructures. With the plans to transform into the Stripe of the blockchain ecosystem, Ramp wants to trim the time to integrate its payment infrastructures into any platform from days or weeks to a matter of hours.

The firm says these visions can now be actualized using the newly secured capital, with additional plans to continually build its team.

“We raised to be able to speed up our development even more. Our first priority is to have more payment rails around the world,” says Szymon Sypniewicz, Ramp co-founder and CEO

Founded in 2017, Ramp Network has partnered with more than 400 developers around the world including the likes of Axie Infinity, Mozilla, Opera Browser and Dapper Labs, and is the exclusive on-ramping partner for Sorare.

Beyond these partners, Ramp Network is also looking to onboard more global brands like Facebook as well as mainstream game developers looking for avenues to enter into the crypto ecosystem.

Positioning for a Web3.0 Future

A number of companies are positioning for a Web3.0 driven future in many ways ranging from venture capital funding to direct engagement in the space. The blockchain world has seen a lot of funding this year with FTX Derivatives Exchange, and Palm NFT Studio amongst the primary beneficiaries of this funding from investors who want to tag along and be positioned for the Web3.0 future.

Image source: Ramp.network

Goldman Sachs Offers Customers Access ETH Fund via Galaxy Digital

Multinational investment bank Goldman Sachs today announced its partnership with Galaxy Digital, the crypto merchant bank founded by Mike Novogratz, to once more enable its customers to get greater access to the crypto business.

According to a new Securities and Exchange Commission filing, New York City headquartered Goldman Sachs has been giving its customers exposure to ETH through Galaxy Digital’s Ethereum Fund.

Customers of Goldman Sachs who intend to invest in Ethereum (ETH) on the spot, can now get access through Galaxy’s ETH Fund.

As per the filing dated March 8, Goldman was named as a receiver of fees for introducing customers to the fund.

While the actual amount bought by Goldman clients is unknown, the filing shows the minimum investment per investor is $250,000. The report further indicates that the Galaxy’s ETH Fund has made sales of slightly more than $50.5 million since its beginning.

Goldman Sachs is now recommending Galaxy Digital’s ETH Fund as a potential investment product that clients should go for.

Expanding Access of Crypto Product to Clients

This is not the first time Goldman Sachs and Galaxy Digital have collaborated. Goldman has been ramping up its cryptocurrency work in recent months. In June last year, the investment bank started trading Bitcoin futures with Galaxy Digital to help clients as hedge funds deal in publicly traded futures tied to Bitcoin. The trades represented the first time that Goldman used a digital assets firm as a counterparty.

In May, Goldman created a cryptocurrency trading desk to make markets in digital currencies such as Bitcoin. The move marked its major step in digital assets investing.

Goldman assigned Galaxy to serve as its liquidity provider to help it equip its clients with best-execution pricing and secure access to the assets they want to trade.

Goldman has been leaning on Galaxy for access to the crypto world because the highly regulated banking industry can’t handle Bitcoin directly. Goldman found Galaxy as a partner with a wide range of liquidity venues and differentiated derivatives capabilities spanning the crypto ecosystem.

In July, Goldman filed an application with the US Securities and Exchange Commission (SEC) to offer an exchange-traded fund (ETF) focused on securities of cryptocurrency-related companies.

Goldman Sachs Trades First Over-the-Counter Crypto Transaction with Galaxy Digital

Goldman Sachs Group Inc, a major US multinational investment bank headquartered in New York City, has further expanded its digital-asset offerings to Wall Street investors.

The investment bank announced Monday that it has traded the first non-deliverable Bitcoin option, a derivative tied to Bitcoin’s price that pays out in cash.

The transaction was facilitated by Galaxy Digital Holdings Ltd., a crypto financial-services company led by former Goldman partner Michael Novogratz. The move marked Goldman’s push further into the nascent market for derivatives tied to digital assets.

The product launch is important as crypto holders such as hedge funds, and Bitcoin miners are looking for derivative exposure to Bitcoin, either to make bets on the cryptocurrency’s price without directly owning it or to hedge existing exposure to it. They use options to hedge risks or boost yields, and over-the-counter transactions are normally larger trades negotiated privately.

In a statement, Damien Vanderwilt, the co-president and head of global markets at Galaxy, talked about the development and said: “This marks the first OTC crypto transaction by a major bank in the U.S. as Goldman Sachs continues expanding its cryptocurrency offerings, demonstrating the continued maturation and adoption of digital assets by banking institutions. The move is set to open the door for other banks considering OTC as a conduit for trading digital assets.”

Max Minton, Goldman’s Asia Pacific head of digital assets, also commented about the announcement and stated: “This is an important development in our digital assets capabilities and for the broader evolution of the asset class.”

Enabling Customer’s Access to Digital Assets Markets

Early this month, Goldman Sachs Group Inc started exploring offering over-the-counter bilateral crypto options, which signalled to expand its participation in helping firms trade digital-currency derivatives.

Following a growing demand from institutional clients, Goldman reopened its crypto trading desk in March last year after a three-year break. As a result, Goldman tapped Galaxy Digital as its liquidity provider or a market maker for block trades on CME Group. Goldman opened up trading of non-deliverable forwards, a derivative tied to Bitcoin’s price that settles in cash. It also provides exchange-listed options and futures trading in Bitcoin and Ether.

The major investment bank has seen demand for derivative-type hedging, and the development of an options market is set to be the next big thing.

The market for these options is still in its infancy and has been dominated by crypto-native companies like Galaxy Digital Holdings Ltd, Genesis Global Trading Inc., and GSR.

Through Galaxy Digital, Goldman now provides liquidity and takes risk on behalf of clients to facilitate larger crypto derivatives trades.

CI Global Asset Management Partners with Galaxy Digital, Launching Blockchain and Metaverse ETFs

CI Global Asset Management (“CI GAM”), a major Canadian asset management firm, has partnered with Galaxy Digital to launch ETFs focused on blockchain technology and Metaverse.

The two ETFs, named CI Galaxy Blockchain ETF and CI Galaxy Metaverse ETF, are officially traded on the Toronto Stock Exchange (“TSX”) under the ticker symbols CBCX and CMVX, respectively.

The ETF will charge users an annual management fee of 0.50%.

Roy Ratnavel, executive vice president at CI GAM, said that through CBCX and CMVX, the company’s capabilities in cryptocurrencies and thematic ETFs would be strengthened.

He said that:

“Blockchain and the metaverse are two extraordinarily powerful trends that are set to dramatically change our society and how we do business.”

Galaxy Digital is a diversified financial services firm dedicated to the digital asset, cryptocurrency and blockchain technology industry. “Our ETFs provide investors with low-cost, convenient and diversified exposure to the growth potential of these rapidly developing, leading-edge sectors,” he added.

Recently, Multinational investment bank Goldman Sachs announced its partnership with Galaxy Digital, the crypto merchant bank founded by Mike Novogratz, to enable its customers to get greater access to the crypto business.

Galaxy Digital Loses $111.7m in Q1 as Crypto Markets Plunge

A diversified financial services firm dedicated to the digital asset, Galaxy Digital (GLXY), announced its financial results for the first quarter ended March, with a significant financial loss.

The company recorded a net loss of $111.7 million due to unrealised losses in digital assets and investments in its trading and investing businesses.

In the same period, in 2021, it generated a profit of $858.2 million.

Last week, the Federal Reserve raised interest rates by 50 basis points, the largest rate increase in 20 years. There has been a sell-off panic in both the cryptocurrency and stock markets.

But CEO Michael Novogratz said during Galaxy’s earnings call on Monday that he wasn’t nervous or panicked, noting that cryptocurrencies are now serving as a tech game savings driver.

The company currently manages about $2.7 billion in assets, down 5 % from the previous quarter, according to financial data.

In May, the company announced its $1.2 billion acquisition of BitGo, which will help transform such exchanges.

BitGo, an independently regulated digital asset custodian, will provide Galaxy with a critical piece of infrastructure, making it a one-stop crypto-shop for institutional investors. BitGo will provide a cross-selling opportunity for Galaxy, which has a combined customer base of 700 institutions.

A few days ago, Galaxy Digital also partnered with CI Global Asset Management (“CI GAM”), a major Canadian asset management firm, to launch ETFs focused on blockchain technology and Metaverse.