Galaxy Digital’s decision to move substantial amounts of Ethereum echoes a similar sentiment to its previous stance on the cryptocurrency, particularly evident in actions taken last year.
In a strategic move suggesting bullish confidence in Ethereum’s (ETH) future, billion investor Mike Novogratz’s Galaxy Digital Holdings Ltd (TSE: GLXY) has initiated the transfer of 26,000 ETH from Coinbase Global Inc (NASDAQ: COIN) and Binance per a report from on-chain analytics platform Lookonchain.
Galaxy Digital’s Continued Bullish Stance on Ethereum
The transfer, valued at approximately $76.2 million, comes following a notable surge in Ethereum’s price, which has seen a remarkable 10% increase over the past week, reaching levels not seen in nearly two years. Etherscan data unveiled a series of five transactions, with four originating from Binance and one from Coinbase Prime.
Galaxy Digital’s decision to move substantial amounts of Ethereum echoes a similar sentiment to its previous stance on the cryptocurrency, particularly evident in actions taken last year. In October, reports show Galaxy Digital’s notable long positions on both Bitcoin (BTC) and ETH, particularly on lending protocols Aave and Compound. This proactive stance preceded a remarkable rally in the crypto market.
During this period, Galaxy Digital released a research paper, projecting an impressive $14.4 billion inflow for spot Bitcoin Exchange-Traded Fund (ETF) within the first year of issuance. Now, with the anticipated launch of an ETH ETF in May, Galaxy Digital’s recent ETH transaction indicates a renewed confidence in Ethereum’s potential as well.
The United States Securities and Exchange Commission (SEC) currently has multiple applications pending for spot Ethereum ETFs. However, the SEC’s delay in deciding on a spot Ether ETF proposal jointly presented by Invesco and Galaxy Digital has introduced a degree of uncertainty.
This proposed ETF aims to provide professional investors with direct exposure to ETH, addressing a gap in the market where regulated US investors have limited avenues for betting on Ethereum’s growth, primarily through Ethereum futures listed on the Chicago Mercantile Exchange (CME).
Ethereum’s Market Dynamics and Outlook
At the time of writing, Ethereum is trading at $2,932, demonstrating a modest 0.6% increase over the past 24 hours, with a market cap of $352 billion. Notably, trading volume has surged by over 23% during the same period, indicating heightened interest among traders. The price chart pattern suggests a clear move above $3,000 in the near term.
Additionally, Ethereum whales are also actively accumulating the digital asset, further underlining growing confidence in its potential. A recent transaction saw an Ethereum whale acquiring 21,353 ETH at an average price of $2,810 per token, marking a continuation of purchases since February 8.
Market analysts have been increasingly optimistic about Ethereum’s outlook, with calls for a rally to $4,000 gaining traction, particularly in anticipation of the upcoming Dencun upgrade next month. Renowned crypto analyst Michael van de Poppe believes the price of Ethereum could potentially mirror Bitcoin’s gains and rally to $4,000 as Bitcoin enters a consolidation phase, shifting momentum towards Ethereum.
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