a rough second quarter on Tuesday, posting a net loss of $46 million and highlighting the extent to which last year's crypto credit crisis and slew of bankruptcies left the industry's capital markets in tatters.
As we move further away from the FTX blowup, it appears Galaxy's clients are becoming more active, according to president Chris Ferraro. Here's the relevant passage from the firm's analysts' Q&A: Clients are also behaving differently, opting to engage bilaterally through more complex derivatives structures rather than via crypto exchange venues. That's good news for shops like Galaxy which can service those needs. This shift in flows is apparent across desks, with one executive at a rival trading shop noting that bilateral, more relationship-driven flows in this climate represent about four times the flows from exchanges.