Mainstream adoption of digital assets is steadily increasing, driven by significant regulatory advancements and rising institutional interest, according to Canaccord Genuity research.

The research report from Canaccord highlights that this growing adoption is expected to fuel sector growth, with Galaxy Digital well-positioned to take advantage of these trends.

**Slow and Steady Adoption**

Canaccord Genuity notes that cryptocurrency adoption is progressing at a “slow and steady” pace, which bodes well for long-term growth. Recent developments, such as the SEC’s approval of eight spot Ethereum exchange-traded funds (ETFs), are pivotal for institutional acceptance of digital assets. This regulatory progress is likely to lead to further approvals, paving the way for broader adoption. Digital assets are nearing all-time highs, driven by regulatory clarity and strong business performance from leading crypto firms.

The integration of crypto into traditional financial systems is evidenced by partnerships between crypto companies and major financial institutions, indicating a deeper acceptance of digital assets within the global financial ecosystem.

**Galaxy Digital Poised to Benefit**

Galaxy Digital, a key player in crypto financial services, is well-positioned to benefit from this mainstream adoption trend. Canaccord Genuity has raised its price target for Galaxy Digital (GLXY) from C$17 to C$23, maintaining a buy rating. Galaxy Digital’s shares closed at C$16.25 on June 7.

The report credits Galaxy Digital’s strategic positioning and effective business execution for the positive outlook. The company has made significant inroads into the ETF market through partnerships with major financial firms like Invesco, DWS, and Itau, which are expected to drive substantial growth in the ETF sector globally. Additionally, Galaxy Digital acted as the exclusive financial advisor in Robinhood’s acquisition of Bitstamp, showcasing its robust investment banking capabilities.

The report also highlights the potential appreciation of Galaxy’s Helios mining facility in west Texas, particularly if the demand for energy-intensive Bitcoin mining from AI companies continues to rise, exemplified by Core Scientific’s recent initiatives.

Canaccord’s report underscores Galaxy Digital’s strong financial position, with over $2.2 billion in equity book value and $1.5 billion in liquid assets at the end of Q1. The firm expects Galaxy Digital to continue operating slightly above breakeven, enhancing prospects for future growth and profitability.