Galaxy Digital Holdings has acquired two cryptocurrency trading firms: DrawBridge Lending and Blue Fire Capital. The acquisition is part of Galaxy Digital’s goal to promote cryptocurrencies within the traditional finance sector.
Galaxy Digital, owned by cryptocurrency bull Michael Novogratz offers trading, asset management, and investment banking services. According to Galaxy Digital, the acquisition is preparing to meet a bigger wave of institutional demand for bitcoin.
DrawBridge is a Chicago based company that provides commercial and individual loans on secured bitcoin held at a qualified custodian. On the other hand, Blue Fire Capital, also based in Chicago, offers investment brokerage and trading services focusing on crypto assets.
Galaxy Digital will now handle the projected institutional interest in cryptocurrencies by integrating DrawBridge and Blue Fire into Galaxy into Digital Trading. According to Novogratz:
“Institutional investors and corporates are becoming more knowledgeable and comfortable with digital assets and they are increasingly grasping the purpose and importance of cryptocurrency in their investment strategies.”
DrawBridge and Blue Fire have successfully applied their institutional expertise in traditional lending, structured products, and futures. Galaxy Digital seeks to tap on the knowledge of dealing with institutions.
Novogratz on Covid-19’s impact on Bitcoin
Over recent years, Galaxy Trading has been putting into action its product and technology roadmap. Under the roadmap, the company paved the way for first-class execution, deep liquidity, and an expanding set of services across spot and derivatives. The acquisitions seek to build on the progress made.
The announcement comes after Novogratz stated that the coronavirus pandemic acted as an accelerator for Bitcoin’s uptake. His sentiments come after Bitcoin hit a yearly high over the $16,000 mark.
According to Novogratz, the price movement should not come as a surprise. Speaking during the company 2020 Q3 financial earnings call, Novogratz maintained that Bitcoin’s rise should not be attributed to an ongoing speculation mania.
Related video: Novogratz Predicts One of the Most Important Years for Crypto