Crypto Adoption Is Coming 'Slow And Steady,' Research Report Says

Zinger Key Points
  • With digital assets near all-time highs, incremental regulatory clarity is driving mainstream acceptance of cryptocurrencies.
  • Benzinga's Future of Digital Assets event will explore key trends and forecasts in the evolving cryptocurrency landscape.

A new research report indicates a significant uptick in the mainstream adoption of digital assets, driven by recent regulatory advancements and strategic industry moves.

What Happened: This shift towards mainstream acceptance is anticipated to benefit key players like Galaxy Digital Holdings BRPHF, according to Canaccord Genuity.

According to the research firm, the approval of eight 19b-4 filings by the SEC in May to launch Ethereum ETH/USD ETFs marks a pivotal step.

“This SEC move would not have been done if we weren’t on the path to ETH ETFs approvals,” the report notes, highlighting the growing institutional acceptance of cryptocurrency assets that is coming “slow and steady.”

This regulatory nod is seen as a precursor to further approvals, setting the stage for increased adoption.

Galaxy Digital Holdings is well-positioned to capitalize on this trend, thanks to its strategic partnerships with leading financial service providers such as Invesco, DWS, Itau and CI.

The company is expected to garner significant assets in the ETF space globally.

The report elevates Galaxy Digital Holdings’ price target from CA$17.00 to CA$23.00 ($16.50), reflecting this positive outlook.

The crypto mining sector is also witnessing notable advancements.

Last week, Core Scientific, a leading Bitcoin miner, formed a strategic relationship with data center player CoreWeave.

“CoreWeave has also bid to acquire Core Scientific CORZ. Galaxy’s Helios mining site in west Texas has material expansion opportunities with ample access to more power,” the report elaborates.

If the AI-driven demand for data center capacity continues to surge, such mining operations could see substantial appreciation.

Further bolstering the sector’s credibility, Robinhood recently announced its intent to acquire European crypto exchange Bitstamp.

“Galaxy served as financial advisor to Bitstamp, as the company continues to build out its advisory business in digital assets,” the report highlights.

Also Read: Financial Sector Dominates Q1 Crypto Funding With $323M Inflows

Why It Matters: The broader crypto market is hovering near all-time highs, driven by incremental regulatory clarity and solid business execution by industry leaders like Galaxy Digital Holdings.

The report emphasizes that “with digital assets hovering near all-time highs, some incremental logjam break on the regulatory front, good business execution by GLXY and some rerate up on an SOTP valuation, we are boosting our price target.”

Canaccord Genuity’s research also points to a robust financial outlook for Galaxy Digital Holdings.

The company’s balance sheet showed over $2.2 billion in equity book value and $1.5 billion in liquid assets at the end of Q1.

“On an operating basis, we see Galaxy running the business a little bit above breakeven,” the report notes, highlighting the potential for future profitability and growth.

What’s Next: As the digital assets sector continues to evolve, industry stakeholders are gearing up for significant events and discussions.

Notably, Benzinga’s Future of Digital Assets event on Nov. 19 will serve as a critical platform for industry leaders to delve into these trends and forecast the future trajectory of digital assets.

Read Next: Ethereum Is ‘Either Building Capitalism Or Planned Socialism’ But Cannot Do Both, Criticizes Crypto VC

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