According to Canaccord Genuity research, the adoption of digital assets is steadily rising, driven by notable regulatory progress and increased institutional interest. The report highlights that this gradual adoption is beneficial for long-term growth, with Galaxy Digital poised to take advantage of these trends.

Canaccord notes that the adoption of crypto is progressing at a "slow and steady" pace, positively impacting long-term sector growth. Key developments, such as the SEC's approval of eight spot Ethereum ETFs, are pivotal for institutional acceptance. This regulatory progress is expected to lead to more approvals, facilitating broader adoption. Digital assets are nearing all-time highs, supported by regulatory clarity and strong business performance by leading crypto firms.

The integration of crypto into traditional finance is further evidenced by partnerships between crypto companies and major financial institutions, signaling deeper incorporation into the global financial system and reinforcing mainstream acceptance.

Galaxy Digital is well-positioned to benefit from this growing mainstream adoption. Canaccord 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 highlights Galaxy Digital's strategic positioning and business execution as key factors for its positive outlook.

Galaxy Digital has made significant strides in the ETF market through partnerships with major financial firms like Invesco, DWS, and Itau, expected to drive substantial global growth in the ETF space. Additionally, Galaxy Digital's role as the exclusive financial advisor in Robinhood's acquisition of Bitstamp showcases its strong investment banking capabilities.

The report also notes the potential value appreciation of Galaxy’s Helios mining facility in west Texas, particularly if demand for energy-intensive Bitcoin mining from AI companies continues to rise, as seen with Core Scientific's strategic initiatives.

Canaccord emphasizes 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 just above breakeven, enhancing prospects for future growth and profitability.