Galaxy Digital Could Benefit From Improving Political Sentiment Towards Crypto in U.S.: Benchmark

Analyst Mark Paller assessed the digital assets platform’s performance against industry benchmarks, recommending a purchase and setting a C$19 valuation. The stock ended the previous day trading approximately 6% up from the prior close at C$14.76. The firm boasts a robust financial position with $1.5 billion in available funds, connections to 1,161 business partners, and backing for over 100 distinct cryptocurrencies.

The passing of the bipartisan Financial Innovation and Technology for the 21st Century Act (FIT21) last month, which boosts political favorability towards crypto, positively impacts Galaxy’s business prospects in the US. Moreover, this development raises the possibility that the company will be eligible to list on Nasdaq.

The note mentioned that the approval of 11 Bitcoin ETFs in the United States during January significantly benefited the company. Additionally, it is anticipated that the business will experience positive effects due to the surge in bitcoin prices following the recent halving event and the growing institutional interest in the cryptocurrency.

As the adoption of digital assets by institutions gains momentum, Galaxy is well-positioned to capture a significant portion of this growing market through its recently launched prime brokerage business, GalaxyOne. (Palmer’s statement paraphrased)

The report mentions that Galaxy aims to register with the Securities and Exchange Commission (SEC) as a broker-dealer, placing it in the same league as Coinbase (COIN).