- Galaxy Digital CEO Mike Novogratz firmly believes that the U.S. Securities and Exchange Commission (SEC) will approve a spot Bitcoin ETF this year.
- The diversification of Galaxy Digital’s positions in Bitcoin and Ethereum, along with its use of Aave and Compound, is a positive development for the DeFi sector.
- Mike Novogratz expresses confidence that the constructive discussions between Bitcoin ETF issuers and the SEC in 2023 indicate the approval of a spot Bitcoin ETF.
On-chain data platform reveals today that Galaxy Digital, Mike Novogratz’s cryptocurrency investment firm, has taken long positions in Bitcoin and Ethereum.
Galaxy Digital Goes Long on Bitcoin and Ethereum
Galaxy Digital, the cryptocurrency investment firm led by Mike Novogratz, has recently made positive remarks about cryptocurrencies. Novogratz strongly believes that the U.S. Securities and Exchange Commission (SEC) will approve a spot Bitcoin ETF this year. In addition to these developments, an on-chain data platform reports that Galaxy Digital has taken long positions in Bitcoin and Ethereum on decentralized lending platforms Aave and Compound. On October 28, Lookonchain reported:
“It appears Galaxy Digital has long positions on $BTC and $ETH on Aave and Compound.”
Lookonchain cited Debank data indicating that Galaxy Digital deposited 4,168 WBTC (worth $142 million) and 16,000 ETH (worth $28.6 million) into Aave and Compound. They borrowed 71.6 million USDT and 21.9 million USDC from Aave and Compound.
Galaxy Digital’s diversification of Bitcoin and Ethereum positions and its use of Aave and Compound is a positive development for the DeFi sector. As a result, AAVE and COMP prices have increased by over 5% and 3% respectively in the last 24 hours. Aave and Compound prices have surged by more than 20% and 12% in the recent crypto market rally led by the Bitcoin ETF.
Mike Novogratz expresses confidence that the constructive discussions between Bitcoin ETF issuers and the SEC in 2023 indicate the approval of a spot Bitcoin ETF. According to him, it’s now a matter of “when” rather than “if.”
Will Bitcoin and Ethereum Prices Increase?
Galaxy Digital stated in a report this week that a spot Bitcoin ETF could attract $14.4 billion in its first year. Galaxy Digital also mentioned that, after the launch of a spot Bitcoin ETF in the U.S., Bitcoin’s price would increase by approximately 74.1% in the first year.
Currently, Bitcoin is trading at around $34,160 with a 0.70% increase in the last 24 hours and a 15% increase in the past week. A study by Matrixport suggests that Bitcoin could reach $45,000 in 2023 and potentially hit $125,000 by December 2024. Ethereum’s price has also increased by 0.70% in the last 24 hours and is currently trading at $1,788.
