Crypto Biz: Galaxy, CoinShares Q1 results, ETFs on the blockchain, and more

Spot Bitcoin exchange-traded fund (ETF) managers have released their first financial results since the crypto funds began trading. 

Galaxy Digital’s net income rose 40% in the first quarter, with management and performance fees reaching $17.8 million — a 113% increase from the previous quarter.

CoinShares, which recently completed the acquisition of Valkyrie’s spot Bitcoin (BTC) ETF, posted a 216% revenue gain in Q1 to 19.5 million British pounds ($24.5 million).

On the tokenization front, executives from Ripple and Stellar recently discussed the blending of payments and investments enabled by asset tokenization. Franklin Templeton’s CEO Jenny Johnson also forecasted that all ETFs and mutual funds could soon be on blockchains.

This week’s Crypto Biz also looks at Polymarket’s $70 million funding raise and Antonio Juliano’s decision to step down as CEO of dYdX.

CoinShares posts record revenue in Q1, backed by markets, Bitcoin ETFs

European asset manager CoinShares reported a significant performance boost in the first quarter of 2024, largely attributed to a recovering market in the period. The firm saw its revenue surge to 19.5 million pounds ($24.5 million), a 216% increase from the same period in 2023. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a substantial rise, reaching 34.2 million pounds ($43 million), up from 7 million pounds ($8.8 million) in the previous year, marking a fourfold increase and an EBITDA margin of 78%. Additionally, CoinShares completed the strategic acquisition of Valkyrie Funds on March 12, expanding its offerings with the rights to Valkyrie’s spot Bitcoin ETF and other crypto funds.

Franklin Templeton CEO says all ETFs and mutual funds will be on blockchain

Franklin Templeton CEO Jenny Johnson reiterated her support for blockchain in a recent Bloomberg interview. During a discussion over tokenization, Johnson said to believe that “ETF and mutual funds are all going to be on blockchain,” adding that the technology had demonstrated significant cost reductions compared to traditional accounting methods. She attributed this prediction to the “huge costs” associated with verifying data between disparate systems — a problem that blockchain was intentionally designed to solve. 

Polymarket raises $70 million from Vitalik Buterin, Founders Fund

Peter Thiel’s venture capital firm, Founders Fund, and Ethereum co-founder Vitalik Buterin have led a $70 million fundraising effort for Polymarket, a platform enabling betting on political events. According to Bloomberg, Polymarket successfully raised $70 million across two funding rounds as betting on the 2024 United States presidential elections gains momentum. The latest Series B Polymarket funding round was spearheaded by Founders Fund, raising $45 million. Polymarket has witnessed a surge in electoral betting, resulting in over $170 million in wagers placed on the upcoming U.S. elections, according to the platform’s website.

Galaxy Digital’s revenue soars with mining, fees at record levels

Galaxy Digital experienced a robust first quarter in 2024, with its net income soaring to $422 million, marking a 40% growth from the previous quarter. The increase was bolstered by record-breaking revenues in both its mining operations and management fees. The company’s mining revenue hit a new high of $31.5 million, up 69% from the previous quarter, largely due to an expanded mining capacity that achieved a hash rate of 5.7 exahashes per second. The company mined 373 Bitcoin at an average cost of less than $19,500 each. On the asset management front, Galaxy also reported a significant rise in income, with management and performance fees reaching $17.8 million, a 113% increase from the previous quarter.

Before you go: Antonio Juliano, the founder of the decentralized exchange dYdX, announced his decision to step down as CEO after leading the platform for seven years. Ivo Crnkovic-Rubsamen, who previously served as dYdX’s chief strategy officer, will now lead the company.

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