Galaxy Digital, led by Mike Novogratz, is making substantial investments in Bitcoin and Ethereum through decentralized lending platforms. Discover their bullish stance on crypto and the potential impact on the market.
Galaxy Digital, the crypto investment firm under the leadership of CEO Mike Novogratz, is making significant moves in the world of cryptocurrencies. The company recently expressed strong confidence in the U.S. SEC approving a spot Bitcoin ETF this year. Additionally, Galaxy Digital is going long on Bitcoin (BTC) and Ethereum (ETH) by leveraging decentralized lending platforms Aave and Compound, according to Lookonchain’s report on October 28.
Data from Debank reveals that Galaxy Digital has deposited 4,168 WBTC (valued at $142 million) and 16,000 ETH (worth $28.6 million) into Aave and Compound. They have also borrowed substantial amounts of USDT and USDC from these platforms. This diversification strategy and use of DeFi lending platforms have had a positive impact on AAVE and COMP prices, with both experiencing significant gains recently.
Mike Novogratz’s optimism about the approval of a spot Bitcoin ETF in 2023 has added to the excitement. If approved, this ETF could potentially attract $14.4 billion in the first year, and Galaxy Digital predicts a nearly 74.1% increase in BTC price within the first year after the ETF’s launch in the United States.