Crypto CasinosNewsGalaxy Digital's Bullish Stance on Bitcoin and Ethereum: Optimistic Outlook for Crypto and DeFi
Galaxy Digital, the crypto investment firm led by Mike Novogratz, has recently made several bullish statements on the future of cryptocurrencies. The firm is confident that the U.S. Securities and Exchange Commission (SEC) will approve a spot Bitcoin exchange-traded fund (ETF) this year. In addition, Galaxy Digital is actively investing in Bitcoin and Ethereum on decentralized lending platforms Aave and Compound.
According to reports, Galaxy Digital has deposited a significant amount of Bitcoin and Ethereum into Aave and Compound. The firm has deposited 4,168 Wrapped Bitcoin (WBTC) worth $142 million and 16,000 Ethereum worth $28.6 million. In return, it has borrowed 71.6 million USDT and 21.9 million USDC from these platforms. This move not only diversifies Galaxy Digital's positions but also demonstrates its bullish stance on the decentralized finance (DeFi) industry.
The news of Galaxy Digital's investment has had a positive impact on the prices of Aave (AAVE) and Compound (COMP). In the past 24 hours, AAVE has seen a 5% increase in price, while COMP has seen a 3% increase. These gains are part of a larger rally in the DeFi market, which has been led by the recent surge in interest surrounding the potential approval of a Bitcoin ETF.
Mike Novogratz, the CEO of Galaxy Digital, is confident that a spot Bitcoin ETF will be approved by the SEC in the near future. He believes that the constructive discussions between Bitcoin ETF issuers and the SEC indicate that approval is imminent. If a Bitcoin ETF is approved, Galaxy Digital predicts that it could attract $14.4 billion of inflows in its first year. Furthermore, the firm expects the price of Bitcoin to increase by nearly 74.1% in the first year after the ETF's launch.
Currently, Bitcoin is trading at $34,239, showing a 0.70% increase in the past 24 hours and a 15% increase in the past week. Matrixport's research suggests that Bitcoin could reach $45,000 by 2023 and $125,000 by December 2024. Similarly, Ethereum has also seen a 0.70% increase in the past 24 hours and is currently trading at $1,788.
Galaxy Digital's bullish stance on Bitcoin and Ethereum, as well as its investment in Aave and Compound, highlights the firm's confidence in the future of cryptocurrencies and the DeFi industry. With the potential approval of a Bitcoin ETF on the horizon, the prices of Bitcoin and Ethereum are expected to rally. Investors should keep a close eye on these developments as they could have a significant impact on the crypto market.
