As the cryptocurrency landscape continues to evolve, key players like Galaxy Digital are making strategic moves to diversify their investments. In recent developments, Galaxy Digital, the crypto investment firm led by CEO Mike Novogratz, has taken long positions in Bitcoin and Ethereum while also engaging with decentralized finance (DeFi) platforms like Aave and Compound.
Galaxy Digital’s Belief in a Spot Bitcoin ETF Approval
Galaxy Digital CEO Mike Novogratz remains optimistic about the approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) in 2023. This confidence is bolstered by constructive discussions between Bitcoin ETF issuers and the SEC, suggesting that it’s not a matter of “if” but “when.”
In addition to this bullish stance, on-chain data has revealed that Galaxy Digital has acquired long positions in Bitcoin (BTC) and Ethereum (ETH) on Aave and Compound, two prominent DeFi lending platforms. According to Lookonchain, Galaxy Digital has allocated 4,168 Wrapped Bitcoin (WBTC) tokens (valued at approximately $142 million) and 16,000 Ether (ETH) tokens (valued at around $28.6 million) to these platforms. Furthermore, they have borrowed 71.6 million USDT and 21.9 million USDC from Aave and Compound.
This strategic diversification of Bitcoin and Ethereum positions and involvement in DeFi is considered a positive development for the DeFi sector. Consequently, AAVE and COMP tokens have both seen a significant price surge in the last 24 hours, rising by over 5% and 3%, respectively. These price movements come on the heels of the recent rally in the crypto market, largely driven by the anticipation of Bitcoin ETFs.
Predictions for Bitcoin and Ethereum Prices
Galaxy Digital’s recent research suggests that a spot Bitcoin ETF‘s launch in the U.S. could attract approximately $14.4 billion in its first year. Furthermore, Galaxy Digital projects that Bitcoin’s price will increase by approximately 74.1% in the first year after a spot Bitcoin ETF’s introduction.
At the time of this writing, Bitcoin is trading at $34,160, reflecting a 0.70% increase in the last 24 hours and a 15% gain over the past week. According to research from Matrixport, Bitcoin could reach $45,000 in 2023 and potentially hit $125,000 by December 2024.
Meanwhile, Ethereum has also seen a 0.70% price increase in the last 24 hours, with its current price at $1,788.
In conclusion, Galaxy Digital’s strategic investments and Mike Novogratz’s confidence in the approval of a spot Bitcoin ETF in 2023 highlight the firm’s bullish outlook on the cryptocurrency market. While the crypto space remains dynamic and ever-evolving, Galaxy Digital’s approach underscores the opportunities and potential for significant gains in this ever-expanding industry.
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