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Tuesday, June 11, 2024
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Digital assets are on a ‘slow and steady’ path to mainstream adoption – Canaccord Genuity

Popular adoption of digital assets is steadily increasing, driven by significant regulatory advancements and growing interest from institutions, according to Canaccord Genuity research.

According to Canaccord’s research report, the mainstream adoption of digital assets is predicted to continue to drive growth in the sector, with Galaxy Digital well-positioned to capitalize on the growing trends. this development.

Adoption is slow and steady

Canaccord Genuity said in its research that cryptocurrencies are gaining adoption at a “slow and steady” rate, which is positive for long-term growth.

According to the report, recent developments, such as the US Securities and Exchange Commission (SEC) approval of eight Ethereum spot ETFs, mark important moments in the adoption of the digital asset number of organizations.

Regulatory progress is expected to pave the way for more approvals, setting the stage for broader acceptance. Digital assets are currently near all-time highs, driven by gradual regulatory clarity and strong business execution by leading crypto companies.

The growing integration of cryptocurrencies into traditional financial systems is also evidenced by partnerships between cryptocurrency companies and major financial institutions. These collaborations demonstrate the deeper integration of digital assets into the global financial system, reinforcing the mainstream adoption trend.

Galaxy Digital is positioned to benefit

Galaxy Digital, a prominent company in the crypto financial services sector, is well-positioned to benefit from this growing mainstream adoption trend.

Canaccord Genuity raised the price target on Galaxy Digital (GLXY) from CAD 17 to CAD 23, maintaining a buy rating on the stock. Galaxy Digital shares closed at CAD 16.25 on June 7.

The report highlights Galaxy Digital’s strategic position and strong business execution as key factors for the positive outlook.

The company has made significant inroads into the ETF market through partnerships with major financial firms such as Invesco, DWS and Itau, which is expected to drive significant growth in the global ETF space . Additionally, Galaxy Digital served as exclusive financial advisor in Robinhood’s acquisition of Bitstamp, demonstrating its strong investment banking capabilities.

The report also points to the potential for increased value of Galaxy’s Helios mining facility in west Texas, especially if demand for energy-intensive Bitcoin mining from AI companies continues to increase. This trend is illustrated by Core Scientific’s recent strategic initiatives.

Canaccord’s report also highlights Galaxy Digital’s strong financial position. At the end of the first quarter, the company’s balance sheet showed more than $2.2 billion in book value equity and $1.5 billion in liquid assets.

The company said it expects Galaxy Digital to continue to operate slightly above breakeven, which increases its future growth and profit prospects.

Jia Bao Ngoc

According to CryptoSlate

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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