The Digital Asset oriented Merchant Bank, Galaxy Digital has acquired Vision Hill. This is one among many of the crypto oriented companies it has acquired in the past.
Galaxy Digital entered into the cryptocurrency industry a few years ago and has still stayed in the sector through the many ups and downs. It has been a roller coaster ride for Galaxy Digital and the team but it still stays robust for a few reasons.
Galaxy Digital Remains A Critical Player in The Decentralized Sector
The primary reason is that Galaxy Digital is an institution that believes in digital currencies and thinks that this innovation is here to stay. That is a strong and bold belief as it is not one that is shared by the general population.
The second reason is that Galaxy Digital is diversified and aims to be the Goldman Sachs of the digital asset industry. This is an important point to make as it means that Galaxy Digital mirrors the branches of Goldman Sachs with asset management, trading operations, and principal investments, investment banking and mining.
Galaxy Digital is invested in key players across the sector. These players include lending institutions such as BlockFi, Bakkt, and others. Further, it has outright purchased firms such as Vision Hill, Bitgo, DrawBridge Lending and BlueFire Capital. All of these purchases took place over the span of a couple of months.
The firm is always on the lookout for additional firms that could add value as it seeks to make more inroads into the institutional space.
That is where Vision Hill comes into the picture.
What Does Vision Hill Group Do and How It Does Work with Galaxy Digital ?
The asset management division of Galaxy Digital purchased crypto fund-of-funds provider Vision Hill Group. Vision Hill Group is a firm that conducts management of over $30 million in assets. The firm also provides consulting, research, and crypto hedge fund indices.
The Vision Hill Group acquisition makes sense for Galaxy Digital as the Vision Hill Group is a fund of funds provider. As more institutional investors in the digital asset sector get involved with those with expertise, firms like Galaxy Digital stand to benefit.
Kurz, the leader of Galaxy Digital’s asset management business noted that Galaxy Digital had strong relationships with the leaders of Vision Hill. They note that they have been building a relationship with the firm over several years now.
As is seen in many acquisitions, the firms understood more about the other and had something of a working relationship, allowing them to make a deal that made sense in the end.
Kurz notes that Galaxy Digital respected the institutional orientation of the founder of the Vision Hill Group and thought now was the perfect time for a collaboration. The recent rise in digital asset prices has led to a higher interest in the acquisition of digital assets. This interest is shared by retail and institutional entities alike. That is why both firms realized that increasing efficiencies and effectiveness would provide massive value.
The Vision Hill Group offers indices that track hedge funds which actively manage funds within this space. Further, they also provide actively managed products in the world of digital assets.
Digital Assets Are In A Downtrend
At the time of this writing, digital assets are in a downtrend. Why are they in a downtrend? Some say that these assets rose too fast. Others would point at Elon Musk and his disparaging comments. Further, others would look at the extreme amount of leverage present within the sector. As such, the assets can go up rather quickly and then descend just as fast or even faster.
Joke tokens like Dogecoin and random assets fell sharply in this current correction but a few experts believe that bitcoin could hit $307,000 by October 2021.
Is this the end for digital assets? Asset management firms like Galaxy Digital are betting that it is not.