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Bitcoin Bull Michael Novogratz’s company, Galaxy Digital, has acquired two cryptocurrency companies in preparation for a “bigger wave of institutional demand” for bitcoin.

Great wave of institutional demand for inbound Bitcoin

Galaxy Digital Holdings announced on Friday that it has acquired two cryptocurrency trading firms: Drawbridge Lending and Blue Fire Capital.

The New York City headquarters provides crypto-financial services and investment management company Galaxy Digital trading, asset management and investment banking services.

“Institutional investors and companies are becoming increasingly informed and familiar with digital assets and are increasingly understanding the purpose and importance of cryptocurrency in their investment strategies,” said Mike Novogratz, founder and CEO of Galaxy Digital.

During his company’s Q3 2020 earnings call on Friday, Novogratz said the Covid-19 pandemic was “really an accelerator for the cryptocurrency business for bitcoin, for blockchain, for everything we do … I see an incredible opportunity. for our company and for space. ” Bitcoin is trading at $ 16,250 at the time of writing. Novogratz explained that the cryptocurrency is trading at this price “not because there is a speculative mania going on,” explaining:

It acts like this because institutions, hedge funds, high net worth individuals and family offices are all moving to bitcoin. They move in as a storehouse of wealth, they come in as an inflation hedge, they move in because it has become an institutional asset.

Recently, noted billionaire investor Bill Miller said he was thinks “Every big bank, every big investment bank, every big high net worth company will eventually get some exposure to bitcoin or something.” JPMorgan analysts too said“Some investors who have previously invested in gold ETFs, such as family offices, may be looking to bitcoin as an alternative to gold.”

Drawbridge Lending in Chicago is a CFTC regulated company that provides commercial and individual loans on secured bitcoin held with a qualified custodian. Also based in Chicago, Blue Fire Capital offers investment brokerage and trading services with a focus on crypto assets.

Novogratz continued:

We look forward to seamlessly integrating Drawbridge and Blue Fire into Galaxy Digital Trading… to further help meet what we believe will be an even greater wave of institutional demand.

What do you think of Galaxy Digital’s acquisitions of two crypto companies? Let us know in the comments below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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