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Cryptocurrencies on “Slow and Steady” Pace to Mainstream Adoption – Canaccord Genuity
According to Canaccord Genuity research, mainstream adoption of digital assets is steadily increasing, driven by significant regulatory advances and growing institutional interest.
According to Canaccord’s research report, mainstream adoption of digital assets is expected to continue to drive the growth of the industry Digital Galaxy well located for capitalize on these evolving trends.
Slow and steady adoption
Canaccord Genuity said in its research that cryptocurrencies are being adopted at a “slow and steady” pace, which is good for long-term growth.
According to the report, recent developmentssuch as the approval of eight by the Securities and Exchange Commission (SEC). Ethereum spot exchange-traded funds (ETF), mark crucial moments in the institutional acceptance of digital assets.
Regulatory progress is expected to pave the way for further approvals, setting the stage for broader adoption. Digital assets are now near all-time highs, fueled by this growing regulatory clarity and solid business execution from major crypto firms.
The growing integration of cryptocurrencies into traditional financial systems is further highlighted by partnerships between crypto companies and major financial institutions. These collaborations mean a deeper integration of digital assets in the global financial ecosystem, strengthening the trend towards mainstream acceptance.
Galaxy Digital is poised to take advantage of this
Galaxy Digital, a leading player in the crypto financial services industry, is well positioned to take advantage of this growing trend of mainstream adoption.
Canaccord Genuity raised its price target on Galaxy Digital (GLXY) from C$17 to C$23, maintaining a buy rating on the stock. Galaxy Digital shares closed at C$16.25 on June 7.
The report highlighted Galaxy Digital’s strategic positioning and effective business execution as key drivers for the positive outlook.
The company has made significant inroads into the ETF market through partnerships with major financial firms such as Invesco, DWS and Itau, which is expected to drive substantial growth in the ETF space globally. Additionally, Galaxy Digital served as exclusive financial advisor in Robinhood’s acquisition of Bitstamp, demonstrating its strong investment banking capabilities.
The report also highlights the appreciation potential of Galaxy’s Helios mining facility in West Texas, particularly if demand for energy-intensive Bitcoin mining from AI companies continues to increase. This trend is exemplified by Core Scientific’s recent strategic initiatives.
Canaccord’s report also highlighted Galaxy Digital’s strong financial position. At the end of the first quarter, the company’s balance sheet showed more than $2.2 billion in book value of equity and $1.5 billion in liquid assets.
The company said it expects Galaxy Digital to continue to operate slightly above breakeven, which boosts its prospects for future growth and profitability.