“Galaxy Digital’s bold move in opening a massive long position on Bitcoin and Ethereum signifies their unwavering confidence in the future of digital assets, igniting excitement and curiosity among investors and crypto enthusiasts alike.”
Galaxy Digital, a blockchain company, has made significant investments in Bitcoin and Ethereum positions as the prices of these cryptocurrencies continue to rise. According to data from DeFi portfolio tracker DeBank, Galaxy Digital deposited 4,168 WBTC (worth $142 million) and 16,000 ETH (worth $28.6 million) into Aave and Compound.
This move by Galaxy Digital showcases their long-term bullish outlook on Bitcoin and Ethereum. The company used these deposits as collateral to borrow $71.6 million in stablecoin USDT and $21.9 million in stablecoin USDC.
The interest in DeFi protocols for cryptocurrency investments has diminished compared to the peak of the DeFi boom in 2021. However, Galaxy Digital’s recent investment indicates a potential return of belief in DeFi protocols.
Galaxy Digital has also projected an upcoming Bitcoin bull run in one of its reports. The company believes that spot Bitcoin ETFs are a better way for conventional investors to enter the crypto industry. These ETFs could attract billions into Bitcoin, and Galaxy Digital is well-positioned to benefit from this influx.
CEO Mike Novogratz of Galaxy Digital shares this belief in a Bitcoin bull run, pointing towards rising adoption from Asia as a potential catalyst. Currently, Bitcoin is trading at $34,194, while Ethereum is trading at $1,786.
The news of Galaxy Digital’s investments has also positively impacted the prices of AAVE and COMP, tokens associated with Aave and Compound. Both tokens have seen a 7-day increase of 7.78% and 9.50% respectively.
Overall, Galaxy Digital’s investments in Bitcoin and Ethereum, along with their belief in a Bitcoin bull run, indicate positive sentiment towards the future of these cryptocurrencies.