In the midst of the storm where the crypto market is suffering from the collapse of Celsius, Three Arrows Capital (3AC), Voyager Digital, Terra, large-scale purchases typical of the bull market appear. Galaxy Digital, the fund of cryptocurrency billionaire Mike Novogratz, bought $ 75.6 million worth of ETH. Here are the details…
ETH purchase of $ 75.6 million for the cryptocurrency fund
According to Trustnodes, Galaxy Corporate Ethereum Fund has purchased $75.6 million worth of ETH, as disclosed in documents submitted to the United States Securities and Exchange Commission (SEC). The purchase was made by 21 investors, each with a minimum investment of $100,000. Additionally, Galaxy Benchmark Crypto Index Offshore has acquired $3.25 million on behalf of ten additional investors. For this acquisition, Gemini, a crypto exchange owned by the Winklevoss twins, will act as the custodian of Galaxy Digital, which already holds $1.7 billion. Galaxy Digital uses the following statements in its statement:
The funds invest directly in Ether. Its price is based on the Bloomberg Galaxy Ethereum Index (“ETH”). Therefore, the investment will affect the price as it relates to the ETH available on the open market and not to virtual ETH bought from an underlying market.
Ethereum (ETH) price stuck in bullish rally
Over the course of a week, Ethereum price has seen an increase of more than 20 percent. According to experts, it has reached a very important psychological point, the 200-day EMA. The price of ETH has soared from almost $1,000 to $1,600 in just seven days. For now, it seems to have reached the peak at the point that could be the new resistance point. According to a recent survey of several interested players in the crypto industry, price sentiment for Ethereum is on the rise and it is estimated that Ethereum could be worth an average of $1,711 by the end of 2022 and $4,412 by the end of 2030.
However, there are critics who see this rally as a possible bull trap, where the price rises and then falls, especially since it has been in a downtrend for eight months. It is believed that Goldman Sachs could be part of the list of investors, or at least attract investors since March when it began offering the Galaxy Ethereum fund to its clients.
This acquisition comes amid some bullish momentum for Ethereum that occurred before the Merge update, which is expected to be completed by September due to delays. Without further delay, this merger will transform Ethereum into a cryptocurrency that uses the proof-of-stake (PoS) mechanism instead of the proof-of-work (PoW) used by Bitcoin. According to several analysts, Ethereum is expected to appreciate when this change is made. The importance of purchasing should be emphasized. The $75.6 million investment is one of the largest since the start of 2021.
