The crypto market's M&A streak continued Monday with Galaxy Digital's announcement that it has acquired investment and asset management firm Vision Hill Group.
According to Galaxy, the acquisition will expand the firm's asset management business, Galaxy Fund Management. Vision Hill offers hedge fund indices and market data tools for professional investors. It also offers portfolio management and advisory services to large investor clients. Vision Hill also operates a crypto fund of funds.
Galaxy offers similar tools such as the Galaxy Bloomberg Crypto Index, which measures the performance of the market's largest cryptocurrencies. Galaxy Digital also offers a number of passive crypto funds, including its Galaxy Bitcoin Funds and Galaxy Ethereum Funds. In the near term, Galaxy could offer a number of new multi-strategy funds, including venture fund of funds, quant fund of funds, and others.
"As the institutionalization of digital assets accelerates, so does the need for comprehensive institutional-grade platforms to support it and that's precisely what we're building at Galaxy," commented Damien Vanderwilt, the firm's co-president and head of global markets.
The former Goldman Sachs partner added: "The powerful data capabilities that Scott, Dan, and the Vision Hill team have developed are the perfect addition to our full suite of technology-driven financial services and investment management solutions, fostering the broader mainstream adoption of digital assets."
The financials of the deal were not disclosed. Galaxy Digital's internal investment banking business worked on the transaction with legal support from David Polk & Wardwell and other firms. Kluk Farber Law served as a legal adviser to Vision Hill.
The deal comes as the broader asset management sector in crypto grows. As noted by Bloomberg's Katie Greifeld, $BTCC — the largest Canadian Bitcoin ETF — has fared well despite the slump in crypto prices, seeing inflows every day last week. Galaxy has filed for its own bitcoin ETF in the U.S.
The transaction comes amid a deal-making flurry in crypto. Galaxy announced a few weeks ago it would acquire custody and financial services firm BitGo in a $1 billion-plus deal.
Earlier this year, Coinbase acquired Bison Trails and Skew, and is said to have held discussions with asset management firm Osprey about an acquisition deal, according to CoinDesk. A spokeswoman for Coinbase declined to comment on the deal, adding the firm does not "comment on rumors and speculation."