Galaxy Acquires Vision Hill, Says Sell-off is No Cause for Concern

Galaxy Digital Asset Management has announced the acquisition of digital asset investment consulting group Vision Hill to expand their institutional offerings. 

The acquisition allows Galaxy Fund Management to expand its services and provide institutional-grade crypto fund-of-funds and investment consulting solutions for institutional allocators, including pensions, endowments and foundations, Steve Kurz, partner and head of asset management at Galaxy, said. 

“As these investors navigate what is often their first allocation to the asset class, Galaxy felt it was important to complement its existing suite of passive products with diversified, actively managed investment vehicles,” said Kurz. 

As part of the acquisition, Galaxy will also offer VisionTrack and the Vision Hill Crypto Hedge Fund Indices. VisionTrack is a crypto buy-side market intelligence database that covers 850 hedge and venture funds. The platform helps investors to make informed allocation decisions.  

The Vision Hill Crypto Hedge Fund Indices are a family of digital asset hedge fund indices that are designed to represent the overall performance of actively managed funds in the space. 

The news comes amid a broad sell-off in cryptocurrencies, largely fueled by Tesla CEO Elon Musk’s comments on Twitter and news that China and the US will move towards greater taxation and regulation of the market. Bitcoin fell about 16% to around $31,772 Sunday afternoon before rising slightly to around $36,000 early Monday. 

“The current sell-off is an important reminder that crypto remains an emerging and volatile asset class, and investors should consider and incorporate core risk management principles like position sizing, portfolio positioning and diversification,” said Kurz. 

Despite the large swings in the market, Galaxy maintains that crypto is a store of value and a must-have in any diversified portfolio. 

“We believe bitcoin functions as ‘digital gold’ in an investment portfolio,” said Kurz. “The fiscal and monetary profligacy of policymakers around the globe is well documented; our view is that hard assets — including bitcoin, gold, and real estate — will serve as an important macro hedge function in portfolios.” 

While investors may be skittish of new regulations, Galaxy sees it as a sign that the asset class is maturing and will only continue to grow. 

“Periodically, technology/product innovation — in tandem with policy and regulatory evolution — converges with the demands of the macroeconomic backdrop to pave a path for the emergence of a new investable asset class,” Galaxy said in a recent note. “This was the case with gold nearly 45 years ago, and is currently the case with cryptocurrency, which has crossed the critical thresholds of market liquidity, regulatory scrutiny and institutional acceptance at a time when managing cash and achieving portfolio diversification has become ever more challenging and meaningful.”