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New York BitLicense
Galaxy Digital, led by Mike Novogratz, received a BitLicense and Money Transmission License from the New York State Department of Financial Services (NYDFS), allowing Galaxy to expand regulated digital asset services to institutional clients in the state.
“Galaxy Digital, a crypto-focused financial services company led by Mike Novogratz, has received a BitLicense and Money Transmission License”
The approvals were granted to Galaxy’s subsidiary, GalaxyOne Prime NY, which provides trading and financing services to institutional investors, and the company said the licenses extend its regulatory reach into New York.
In a statement, Novogratz said New York represents the “deepest pool of institutional capital in the country,” and that the approvals will help broaden institutional access to digital assets.
The BitLicense, introduced in 2015, is described as one of the most difficult regulatory approvals for crypto companies to obtain because it requires extensive compliance controls related to anti-money laundering, cybersecurity, capital reserves and consumer protection.
The licensing push comes as Galaxy reported a net loss of $216 million in the first quarter ended March 31, with gross revenue totaling $10.2 billion for the quarter, down from $12.9 billion in the same period a year earlier.
Funds exit on Iran
Crypto investment products reversed course as CoinShares reported $1.07 billion in net outflows from digital asset exchange-traded products, ending a six-week inflow streak and marking the third-largest weekly exit this year.
Bitcoin investment products drove most of the weekly redemptions across global markets, with investors withdrawing $982 million from Bitcoin funds, while Ether products recorded $249 million in outflows.
CoinShares head of research James Butterfill linked the flows to US policy developments and said select altcoins benefited from improving regulatory sentiment, citing progress on the CLARITY Act as a supportive factor.
Butterfill also said, “The momentum and progress are both strong” as lawmakers review the legislation, while Republican Senator Thom Tillis said, “more work remains in the weeks ahead to make this legislation even better.”
The outflow shift was tied to geopolitical risk-off sentiment as energy market disruptions near the Strait of Hormuz pushed oil prices higher last week, contributing to a renewed increase in US inflation.
Altcoins attract inflows
Despite the broader outflow, several digital assets recorded positive capital flows, with XRP investment products bringing in $67.5 million in net inflows and Solana funds adding $55.1 million in new allocations.
“the total assets under management decreased from $159 billion to $157 billion”
ForkLog cited a CoinShares report saying the total assets under management decreased from $159 billion to $157 billion, with the primary impact on Bitcoin and Ethereum while some altcoins continued to attract capital.
CoinShares also reported that the outflow period ran from May 11 to 15, and that crypto funds even showed a positive daily inflow of $174 million on Thursday despite negative sentiment intensifying amid geopolitical tensions around Iran.
Whalesbook said Bitcoin dropped below a key $77,800 level, reaching its lowest point in over two weeks near $76,711, and it linked the sell-off to heightened US-Iran tensions and rising oil prices.
In the same period, Crypto Briefing said oil past $112 a barrel and that Bitcoin slipped toward $76K, while Goldman exited XRP and Solana ETFs and raised its IBIT exposure, with Goldman’s Q1 2026 filing revealing a complete exit from all altcoin ETF holdings.