Galaxy Digital seems to be bullish on Bitcoin and Ethereum, as revealed by the latest data. The blockchain company recently invested heavily in Bitcoin and Ethereum positions amidst the ongoing increase in price.
While quoting data from DeFi portfolio tracker DeBank, Lookonchain showed that Galaxy Digital deposited 4,168 WBTC (worth $142 million) and 16,000 ETH (worth $28.6 million) into Aave and Compound.
— Lookonchain (@lookonchain) October 28, 2023
Galaxy Digital Makes Huge Deposits Into DeFi Protocols
Galaxy Digital has always been a Bitcoin supporter. Now, the company has made its move on the long-term future of Bitcoin and Ethereum.
Specifically, the company deposited Wrapped Bitcoin and Ethereum worth a total of $170 million into decentralized protocols Aave and Compound as collateral to borrow $71.6 million in stablecoin USDT and $21.9 million in stablecoin USDC.
The level of interest in DeFi protocols for the purpose of investing in cryptocurrencies is a shadow of what it was in 2021, during the peak of the DeFi boom. For instance, data from DeFi aggregator DeFiLlama puts the current total value locked (TVL) of the Aave protocol at $5.432 billion.
Bitcoin (BTC) is currently trading at $34.169. Chart: TradingView.com
This represents a 72% fall from its highest point of $19.442 billion in October 2021. However, Galaxy Digital’s DeFi route to going long on Bitcoin and Ethereum signals what might be the return of belief in DeFi protocols.
Why Galaxy Digital Is Going Long On Bitcoin And Ethereum
Galaxy Digital has projected an upcoming Bitcoin bull run in one of its recent reports. According to the company, spot Bitcoin ETFs are a better way for conventional investors to enter into the crypto industry than current market products.
These ETFs could attract billions into Bitcoin, reaching over $14.4 billion in inflows in the first year of their approval. With its recent investment move, Galaxy Digital is in a prime position to benefit from inflows into Bitcoin.
Mike Novogratz, the company’s CEO, also strongly believes that a Bitcoin bull run is around the corner. Even before spot Bitcoin EFT applications were made by BlackRock and other investment companies, Novogratz pointed toward the rising adoption from Asia as a potential catalyst for a Bitcoin bull run.
At the time of writing, Bitcoin is trading at $34,194 and is looking to take a strong footing over $35,000. Ethereum has had a lesser price spike than Bitcoin in the past week and is currently trading at $1,786.
On the other hand, both AAVE and COMP reacted to Galaxy Digital going long on Bitcoin and Ethereum on the DeFi protocols. These tokens are also up by 7.78% and 9.50%, respectively in a 7-day timeframe.
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