Mike Novogratz’s Galaxy Digital is taking a positive stance on Bitcoin and Ethereum by participating in decentralized lending platforms Aave and Compound, as reported by Lookonchain.
The CEO, Mike Novogratz, has been vocal about his optimism for the crypto market and his belief that the U.S. SEC will greenlight a spot Bitcoin ETF in the near future. According to on-chain data, Galaxy Digital’s investments reflect their confidence in Bitcoin and Ethereum.
Galaxy Digital Holds Bullish Positions in Bitcoin, Ethereum, Aave, and Compound
Mike Novogratz’s crypto investment firm, Galaxy Digital, has taken long positions in Bitcoin (BTC) and Ethereum (ETH) on decentralized lending platforms Aave and Compound, according to Lookonchain’s report on October 28.
Data from Debank suggests that Galaxy Digital deposited 4,168 Wrapped Bitcoin (WBTC) worth $142 million and 16,000 ETH valued at $28.6 million into Aave and Compound. They borrowed 71.6 million USDT and 21.9 million USDC from these platforms.
This move by Galaxy Digital, diversifying its positions in Bitcoin and Ethereum while utilizing Aave and Compound, is seen as a bullish development for the decentralized finance (DeFi) sector.
As a result, AAVE and COMP tokens have experienced a 5% and 3% increase in the past 24 hours, respectively. These gains have been part of a broader rally in Aave and Compound prices, with increases of over 20% and 12%, respectively, likely driven by the recent surge in the crypto market following the news about a Bitcoin ETF.
Mike Novogratz is optimistic that the constructive discussions between Bitcoin ETF issuers and the U.S. SEC signal the approval of a spot Bitcoin ETF in 2023. He believes it’s just a matter of when, not if.
Potential Rally Ahead for Bitcoin and Ethereum Prices
Galaxy Digital predicts that a spot Bitcoin ETF could bring in $14.4 billion in the first year after it’s issued.
They also believe that the price of Bitcoin (BTC) could surge by about 74.1% during the first year following the launch of a spot Bitcoin ETF in the United States.
Currently, BTC is trading at $34,239, which is a 0.70% increase in the last 24 hours and a 15% rise in the past week. Another research report from Matrixport suggests that Bitcoin might reach $45,000 in 2023 and $125,000 by December 2024.
Ethereum (ETH) has seen a 0.70% increase in the past 24 hours, with its price now at $1,788.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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