Galaxy Digital Has Several Positive Catalysts in Play This Year: Canaccord

Galaxy Digital, the crypto financial services firm led by Michael Novogratz, has several positive catalysts in play this year, according to Canaccord Genuity. The company has been focused on evolving its business model towards institutional trading and the further roll-out of its prime brokerage product, Galaxy One, is seen as a positive development. Canaccord maintains its buy rating on Galaxy shares and a price target of C$17 ($12). The firm had a strong end to 2023, with significant growth in assets under management, equity capital, and income before tax. Canaccord also highlights the increased relationship between Galaxy Digital and the FTX estate, which has driven a material increase in AUM and trading revenue. Additionally, the broker sees ETF activity as a tailwind for Galaxy Digital, particularly the rollout of bitcoin and ether ETFs in partnership with DWS and the gradual ramp-up of the U.S. BTC ETF with partner Invesco.