According to research from Canaccord Genuity, mainstream adoption of digital assets has been steadily increasing, driven by significant regulatory improvements and increasing institutional interest.
According to Canaccord’s research report, mainstream adoption of digital assets is expected to continue to drive growth in the sector, with Galaxy Digital well positioned to benefit from these evolving trends.
Slow and steady adoption
Canaccord Genuity said in its research that crypto is being adopted at a “slow and steady” pace, which is positive for long-term growth.
According to the report, recent developments such as the Securities and Exchange Commission’s (SEC) approval of eight spot Ethereum exchange-traded funds (ETFs) mark pivotal moments in the institutional adoption of digital assets.
Regulatory progress is expected to pave the way for further approvals, paving the way for wider adoption. Digital assets are now hovering near record highs, fueled by this increasing regulatory clarity and robust business execution by leading crypto companies.
The growing integration of crypto into traditional financial systems is further evidenced by partnerships between crypto companies and major financial institutions. These collaborations mean deeper integration of digital assets into the global financial ecosystem, strengthening the trend toward mainstream adoption.
Galaxy Digital is ready to take advantage of this
Galaxy Digital, a prominent player in the crypto-financial services industry, is well positioned to benefit from this rising trend of mainstream adoption.
Canaccord Genuity has raised its price target on Galaxy Digital (GLXY) from C$17 to C$23, maintaining a Buy rating on the stock. Galaxy Digital shares closed at C$16.25 on June 7.
The report highlighted Galaxy Digital’s strategic positioning and effective business execution as key factors behind its positive outlook.
The company has made significant progress in the ETF market through partnerships with major financial firms such as Invesco, DWS and Itau, which are expected to drive substantial growth in the ETF space globally. Additionally, Galaxy Digital served as the exclusive financial advisor on Robinhood’s acquisition of Bitstamp, demonstrating its robust investment banking capabilities.
The report also highlights the potential for Galaxy’s Helios mining facility in west Texas to increase in value, especially if demand for energy-intensive Bitcoin mining from AI companies continues to rise. This trend is exemplified by Core Scientific’s recent strategic initiatives.
Canaccord’s report also highlighted Galaxy Digital’s strong financial position. At the end of the first quarter, the company’s balance sheet showed a book value of more than $2.2 billion in equities and $1.5 billion in cash.
The company said it expects Galaxy Digital to continue to operate slightly above breakeven, boosting prospects for future growth and profitability.