According to CoinDesk: Galaxy Digital, the cryptocurrency financial services firm led by Mike Novogratz, is reportedly planning to acquire more assets from bankrupt cryptocurrency firms following its transaction with the crypto exchange, FTX to sell its Bitcoin and Ether holdings, according to the Financial Times.
The deal in August significantly boosted Galaxy's assets under management, taking the total to $5.3 billion. Galaxy was subsequently permitted by the court to sell FTX’s stakes in Grayscale and Bitwise investment funds.
Steve Kurz, Galaxy's global head of asset management, signals that the firm aims to replicate its experience with other bankrupt firms. This includes companies in which FTX had invested as a venture capital provider. Galaxy emerged successful in its bid to acquire self-custody platform GK8 from the troubled crypto lender, Celsius Network, in December last year.
Kurz said, "We have a crypto venture team that has been investing off our balance sheet for five years. The record that we have on that side of our asset management business means we'd be a good candidate for something like that."
Galaxy, whose shares traded in Toronto underwent an 80% decrease last year, has submitted an application for a spot Bitcoin exchange-traded fund (ETF) in partnership with Invesco. It announced its collaboration with asset manager DWS in April to develop exchange-traded products (ETPs) in Europe.