NewsletterBankrupt Crypto Exchange FTX Seeks Galaxy’s Expertise To Manage Holdings
In a calculated move, the bankrupt cryptocurrency exchange FTX has hired Galaxy, the advising division of Mike Novogratz’s company, to help it with its selling, staking, and hedging activities. The partnership intends to support FTX’s initiatives to reduce market volatility-related risks while maximizing returns on its Bitcoin holdings.
FTX Seeks Galaxy Digital’s Expertise
FTX, which is now bankrupt, is entering uncharted territory by enlisting Galaxy’s consulting skills. This partnership plans to use hedging techniques for its sizeable holdings of Bitcoin and Ethereum to reduce FTX’s vulnerability to price volatility. The strategic hedging will protect against unfavorable price changes, creating a safer environment for the sale of these assets in the future.
FTX will also be able to “stake” its cryptocurrency holdings, which is the practice of lending digital assets to verify blockchain transactions, as a result of its relationship with Galaxy. This technique not only benefits the blockchain network but also piques people’s interest, potentially opening up new revenue streams.
Galaxy’s broad experience in managing and trading digital assets qualifies it as an appropriate advisor for FTX’s demanding needs. The decision is supported by Galaxy Digital’s financial stake in FTX, which has disclosed stakes in the tens of millions of dollars.
Also Read: Shiba Inu Official Hints At Making Shibarium Public Today
Rising Influence Of Galaxy Digital
Galaxy Digital’s power in the cryptocurrency industry is growing more and more obvious as a result of the $21 million worth of Ethereum it has acquired from various sources over the past month. Notably, recent transactions involving organizations like ParaFi and Coinbase demonstrate Galaxy Digital’s active participation in financial activities related to cryptocurrencies.
The cryptocurrency industry is intently watching how FTX and Galaxy’s partnership develops because it may have an impact on how to manage and profit from cryptocurrency holdings in the face of market uncertainty.
Also Read: Solana Bulls Outperform Bears As SOL Soars 6%, Will Prices Skyrocket?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Kevin Hassett Opens Door to Fed Chair Role as Markets Show 87% Odds of Third Rate Cut
- Elon Musk Says Bitcoin Is True Energy Currency as Peter Schiff Labels It ‘Fake Asset’
- Michael Saylor Hints Fresh Bitcoin Buy With “Green Dots” Tease
- Arthur Hayes Flags High Downside Risk in Tether’s Shift Toward Bitcoin and Gold Reserves
- Peter Schiff Predicts Bitcoin Decline Will Extend Into December as BTC Closes Out Red November
- Will Fusaka Upgrade Push Ethereum Price to New Highs?
- Bitcoin Price Poised for a $100k Run as Coinbase Premium Turns Positive
- XRP Price Prediction: Why XRP Could Rally to $3 This Week?
- Ethereum Price Prediction 2025: How High Can ETH Go by Year-End?
- CoinShares Withdraws Staked Solana ETF Proposal: What’s Next for Solana Price?
- XRP Price Forms Alarming Death Cross Amid Intense Whale Dumping
