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Billionaire Mike Novogratz unfazed by Galaxy Digital’s $175.8M loss in Q2

Galaxy Digital founder and CEO Mike Novogratz was unfazed by the firm’s $175.8 million loss as he emphasized the importance of digital asset adoption.

Mike Novogratz’s crypto investment firm Galaxy Digital Holdings has posted a second-quarter loss of $175.8 million.

The figure provides a stark contrast to the firm’s first-quarter report that booked $860 million in comprehensive net profit earlier this year.

Galaxy Digital posted its financial results as of June 30 on Monday, with the firm attributing the $175.8 million Q2 loss to asset price declines after FUD-inducing narratives fueled the crypto downturn in May.

“During the quarter, our results were impacted by a 34% decline in overall digital asset prices and a 41% decline in the price of Bitcoin, relative to the end of the first quarter,” the report read.

In a conference call regarding the Q2 results, CEO and founder Novogratz was unfazed by the loss as he cited several key metrics that he’s enthusiastic about such as counterparty trading volume, blue-chip partnerships in Goldman Sachs, strategic investments and employee acquisitions.

The CEO highlighted that the firm remains “significantly profitable” in the first half of 2021 as net comprehensive income totaled $684 million.

Novogratz noted that market volatility and asset price declines have been “offset by strong tailwinds of adoption across the whole ecosystem” as he pointed to Galaxy’s counterparty trading volumes gained 90% in Q2 and 560% year-over-year (YoY). Galaxy Digital’s assets under management (AUM) gained 12% from Q1 to surpass $1.42 billion as of June 30:

“It’s important to remember that when we look at the business, the long-term arc of adoption of digital assets in crypto matters far more than the businesses we are building.”

“We view the adoption battle as a hard one, stickier, and more financially impactful over time than short-term price moves,” he added.

The Q2 report also highlighted that gross counterparty loan originations grew more than 130% since Q1 to reach approximately $1.56 billion.

Related: Galaxy Digital backs $50M funding round for crypto staking outfit Figment

Galaxy’s headcount saw a significant gain of 45% in Q2 to reach around 220 employees globally. The firm also noted the “key leadership hires” of Tim Grant, former CEO of Swiss Exchange SIX Group who will serve as Head of Europe, as well as former BlackRock COO Jennifer Lee who will become the Chief People Officer

The company also reported an outlay of $52 million of strategic capital into 14 different NFT-related companies with direct investments and through Galaxy Interactive Fund strategies. Novogratz stated he was “most excited” about the investments in Major League Baseball collectible platform Candy Digital, NFT game developer Mythical Games and NFT platform Art Blocks.

$1.2B in Ether withdrawn from centralized exchanges in record daily outflow

Circle plans to become a full-reserve national digital currency bank

Circle is willing to operate under the supervision of the Federal Reserve, the U.S. Treasury, the OCC and the FDIC, CEO Jeremy Allaire said.

Goldman Sachs-backed digital payment company Circle has officially disclosed plans to become a full-reserve national digital currency bank in the United States.

Announcing the news on Monday, Circle co-founder and CEO Jeremy Allaire noted that Circle is willing to operate under the supervision and risk management requirements of the Federal Reserve, the U.S. Treasury, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.

“We believe that full-reserve banking, built on digital currency technology, can lead to not just a radically more efficient, but also a safer, more resilient financial system,” Allaire stated.

The CEO added that Circle anticipates the company’s stablecoin, USD Coin (USDC), will grow to “hundreds of billions of dollars in circulation,” continuing to support high-trust economic activity and becoming a popular tool in financial services and internet commerce applications.

“Establishing national regulatory standards for dollar digital currencies is crucial to enabling the potential of digital currencies in the real economy, including standards for reserve management and composition,” Allaire added.

Circle is known as the principal developer of USDC, the world’s second-largest stablecoin by market capitalization after Tether (USDT). At the time of publication, USDC is the eighth largest cryptocurrency with a market value of $27.8 billion, while USDT holds nearly a $63 billion market cap, according to data from CoinGecko.

In contrast to fractional-reserve banking, full-reserve banking requires banks to keep the full amount of each depositor’s funds in cash and cash equivalents, ready for instant withdrawal on demand. Also known as 100% reserve banking, full-reserve banking provides an alternative to a system in which only a fraction of bank deposits are backed by actual cash on hand and available for withdrawal.

Related: Jeremy Allaire: ‘USDC is halfway to flipping PayPal’

The news comes shortly after Circle filed a registration statement on Form S-4 with the U.S. Securities and Exchange Commission, providing a preliminary statement and prospectus regarding its planned listing through a merger with blank-check firm Concord Acquisition. Under the terms of the agreement, a new Irish holding company will acquire both Concord and Circle and become a publicly traded company that is expected to be listed on the New York Stock Exchange.

$1.2B in Ether withdrawn from centralized exchanges in record daily outflow

Wells Fargo Starts Offering Crypto Investments to Clients

Wells Fargo Starts Offering Crypto Investments to ClientsWells Fargo, one of the largest wealth managers in the U.S., has reportedly started offering crypto investments to its wealth management clients. Wells Fargo Offers Crypto Exposure A spokesperson for American financial services company Wells Fargo reportedly confirmed to Business Insider Friday that the company has started offering cryptocurrency exposure to its wealth management clients. […]

$1.2B in Ether withdrawn from centralized exchanges in record daily outflow

Goldman Sachs Files Defi ETF Application

Goldman Sachs Files Defi ETF ApplicationGoldman Sachs, one of the biggest banking institutions in the world, has filed an application to offer an Exchange Traded Fund (ETF) linked to the performance of decentralized finance (defi) companies. The instrument, if approved, would help institutions and retail investors gain exposure to defi assets with the help of a regulated bank like Goldman […]

$1.2B in Ether withdrawn from centralized exchanges in record daily outflow

Goldman Sach’s new ‘DeFi’ ETF is anything but

Goldman Sachs has filed for a “DeFi” ETF that will track major stocks including Nokia, Google, and Fujitsu.

The proposed fund, dubbed the Goldman Sachs Innovate DeFi and Blockchain Equity ETF, strives to track the Decentralized Finance and Blockchain Index from German financial indices provider, Solactive.

The fund will invest at least 80% of its assets into securities, stocks, and depository receipts featured in the index.

The filing asserts the index seeks to offer exposure to firms aligned with two key narratives: “the implementation of blockchain technology,” and “the digitalization of finance.”

As of July 23, the top stocks included in Solactive’s decentralized finance index included Nokia, Facebook, Google, Accenture, and Fujitsu — each of which represented between roughly six and seven percent of the index.

The likes of PayPal, Microsoft, Visa, and Overstock comprise smaller shares of the index, with Solactive also tracking China’s Alibaba, Tencent, and Baidu among the 20 assets in its DeFi index.

Fans of crypto-native DeFi index products are likely to be disappointed by the methodology underpinning Solactive’s index, which requires a company to be listed on a regulated stock exchange, boast a market cap of more than $500 million, and have a daily average volume of at least $500 million for the past six months.

Solactive’s index is recalculated and rebalanced quarterly on the third Friday of each February, May, August, and November.

Related: Finding the sweet spot: Traditional financial institutions ready for DeFi

Goldman’s filing comes as institutions are increasingly taking note of the DeFi sector, with leading crypto asset manager, Grayscale, announcing plans to launch a decentralized finance fund last week.

Grayscale’s DeFi fund would offer institutions exposure to “blue-chip” tokens of the DeFi sector, including the governance tokens of leading protocols such as Uniswap and Aave.

Top DeFi money market, Aave, is also seeking to target institutional capital, launching a permissioned pool for institutions earlier this month.

Major investment bank, Goldman Sachs, has submitted an application with the U.S. Securities and Exchange Commission for an exchange-traded fund (ETF) offering exposure to public companies associated with the decentralized finance sector.

$1.2B in Ether withdrawn from centralized exchanges in record daily outflow

Goldman Sachs’ Survey Says Almost Half of Family Offices Want To Invest in Crypto – Here Is Why

Wall Street giant Goldman Sachs says that investment firms that cater to the wealth of the super-rich are expressing interest in investing in cryptocurrencies. A survey by the investment banking behemoth shows that 45% of family offices from multiple regions want to invest in cryptocurrencies. Asia-based family offices lead this group with 68% showing interest […]

The post Goldman Sachs’ Survey Says Almost Half of Family Offices Want To Invest in Crypto – Here Is Why appeared first on The Daily Hodl.

$1.2B in Ether withdrawn from centralized exchanges in record daily outflow

Goldman Sachs Survey Shows Family Offices Are Flocking to Crypto Investments

Goldman Sachs Survey Shows Family Offices Are Flocking to Crypto InvestmentsHigh net-worth families are turning to cryptocurrency investments, according to a recent Goldman Sachs survey that found close to half of the company’s family office clients are inquisitive about crypto-asset investments. A Goldman Sachs executive further said that a large portion of the company’s family office clients are asking about blockchain and cryptocurrency technologies. Following […]

$1.2B in Ether withdrawn from centralized exchanges in record daily outflow

60% of uber-rich family offices considering crypto or own it: Goldman Sachs

15% of Goldman Sachs’ family office clients have already purchased digital assets.

A survey conducted by major investment bank Goldman Sachs has found that close to half of its family office clients want to add cryptocurrency to their portfolios, signaling the ultra-wealthy are becoming increasingly bullish on digital assets.

The survey, reported by Bloomberg, queried more than 150 family offices worldwide and found that 15% are already exposed to crypto assets.

A further 45% of offices expressed interest in investing in the asset class as a hedge against “higher inflation, prolonged low rates, and other macroeconomic developments following a year of unprecedented global monetary and fiscal stimulus.”

However other respondents cited concerns regarding the volatility and long-term uncertainty surrounding the price of cryptocurrencies as reasoning for their aversion to the asset class.

Approximately 67% of the firms surveyed manage more than $1 billion worth of assets, with 22% of respondents boasting assets under management exceeding $5 billion.

Bloomberg describes the business of family offices as managing “the wealth and personal affairs of rich people,” including the likes of Microsoft co-founder Bill Gates, former Google CEO Eric Schmidt, and Chanel owners Alain and Gerard Wertheimer.

Related: Billionaire SBF says FTX may one day buy Goldman Sachs and CME

Professional services firm Ernst & Young estimates there are more than 10,000 family offices that each manages the financial affairs of only a single family, half of which were launched during the 21st century. The family office sector is estimated to manage more than $6 trillion globally, overshadowing the hedge fund industry.

Goldman Sachs’ Meena Flynn asserts that most of the firm’s family office clients have expressed an interest in the “digital asset ecosystem,” adding that many customers believe blockchain technology “is going to be as impactful as the internet has been from an efficiency and productivity perspective.”

$1.2B in Ether withdrawn from centralized exchanges in record daily outflow