Galaxy Digital, under the leadership of Mike Novogratz, has seemingly bolstered its Ethereum portfolio, coinciding with a 10% surge in the cryptocurrency’s value over the previous week. This uptick marks Ethereum’s highest price point in two years as anticipation grows for spot Ethereum ETFs.
Ethereum Acquisition by Galaxy Digital
On February 20th, blockchain data indicates that Galaxy Digital acquired 26,000 units of Ethereum, transferring them from prominent exchanges Coinbase and Binance. The holdings, valued at approximately $76.2 million, involved notable transactions from four Binance accounts and one Coinbase Prime account. This movement follows Galaxy Digital’s pattern of Ethereum investments from the past year.
The firm previously engaged in long positions for Bitcoin and Ethereum on DeFi platforms Aave and Compound, just ahead of a significant market rally. Research also hinted at the potential for a spot Bitcoin ETF managed by Galaxy Digital to attract an influx of $14.4 billion within its inaugural year.
Ethereum’s Current Price Trajectory
While these investment activities unfold, the US Securities and Exchange Commission has delayed its verdict on an Ethereum ETF proposed by Invesco and Galaxy Digital, a crucial decision that affects the market. Analyst James Seyffart from Bloomberg Intelligence anticipates possible approvals for spot Ethereum ETFs as early as May of this year.
Ethereum’s price presently hovers around $2,934, having increased by 1% in the last day. Its 24-hour trading span fluctuated between a low of $2,879 and a peak of $2,983. In the midst of these developments, Ethereum’s trading volume has also surged by over 20%, reflecting growing investor enthusiasm.
Moreover, Ethereum whales continue to exhibit keen interest in the cryptocurrency, with recent purchases by a whale reflecting an acquisition of 21,353 ETH at $2,810 each, swiftly resulting in profits exceeding $100 million. This interest is poised to potentially propel Ethereum’s value toward the $4,000 benchmark.