In latest developments, Galaxy Digital plans to educate and introduce financial advisors to the digital asset space. With financial advisors experiencing elevated demand from clients, Galaxy Digital plans to partner with a platform where advisors are actively seeking alternative investments.
Galaxy Digital And CAIS
Galaxy Digital Capital management plans to enter strategic relations with CAIS, a platform that offers an artificial intelligence learning platform for financial advisors. Wealth managers that seek alternative investments leverage the CAIS platform for prospecting opportunities and due diligence. According to recent reports, Galaxy Digital Asset management will partner with the platform to introduce advisors to their digital asset financial services. In addition, Galaxy Digital plans to provide digital asset and blockchain education to advisors interested in the vertical.
Head of Asset Management at Galaxy Digital, Steve Kurz stated that:
“Three out of four financial advisors have received client questions about digital assets and blockchain technology, and over half are likely to allocate client portfolios to bitcoin over the next twelve months. Our groundbreaking partnership with CAIS will both prepare advisors to have thoughtful client conversations about digital assets, and provide institutional-quality digital asset solutions for client portfolios.”
Perfect Timing
CEO of Galaxy Digital, Mike Novogratz believes it’s the perfect time to educate financial advisors, given the current macro trends. This year, the global shutdowns from COVID-19 have spooked retail and institutional investors. The virus has fueled unemployment levels to reach 50 year lows. In addition, constant quantitative easing by the Federal Reserve has resulted in trillions being created out of thin air. The future outlook around inflation and reduced purchasing power have investors looking for alternative solutions.
With Bitcoin being a deflationary asset long term, Wall Street is slowly but surely seeing the value behind Bitcoin. It was recently reported that Wall Street veteran, Paul Tudor Jones was investing in Bitcoin. With economic uncertainties being a major concern, Paul believes that Bitcoin will be the ultimate inflation hedge stating that “We are witnessing the Great Monetary Inflation – an unprecedented expansion of every form of money unlike anything the developed world has ever seen.”
Following this economic environment, large amounts of institutional players are entering digital assets. It was reported by Visionary Financial that the largest digital asset manager Grayscale Investments was seeing record growth. In Q1 of 2020, $503.7 million of fresh capital was injected into Grayscale products. Of this $503.7 million, 88% were hedge funds entering the market. Institutional investors at Grayscale continue to show increased interest in both Bitcoin and Ethereum. Despite Bitcoin being highly correlated to traditional markets lately, BTC has historically been an uncorrelated asset class. In addition, Bitcoin continues to be one of the best performing assets this year, experiencing +31% growth YTD, and surviving during market turmoil.
Perfect Partnership For Both Parties
The strategic relations between Galaxy Digital and CAIS will be positive for both parties. Galaxy Digital has the ability to offer a differentiated approach to Wealth advisors globally. With the team at Galaxy Digital coming from both traditional and crypto markets, they now have the opportunity to connect with traditional investors and help them navigate a newer market. The team at Galaxy Digital can offer value in various areas such as trading, asset management, principal investments, and advisory. On the flip side, CAIS is now bridging the gap between traditional and digital asset investing. With many of these advisors coming from atmospheres that lacked digital asset education, many of them want to be educated before making a financial commitment. The CAIS platform will offer a strategic partner that can pave the way for education and adoption of digital assets.
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