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Galaxy Digital Holdings, a digital assets financial services firm, has topped up its coffers with nearly $1 billion in staked ETH, just days before spot Ethereum ETFs are expected to begin trading in the U.S.
The Michael Novogratz-owned firm said on Friday in a statement that it had taken ownership of the tokens in its acquisition of node operator CryptoManufaktur (CMF). It did not disclose the terms of the deal.
The acquisition has grown Galaxy Digital’s total percentage of staked Ethereum tokens by roughly 43%.
“Galaxy is rapidly expanding its… staking capabilities and capacity to provide enterprise-grade technical expertise and support to strategic corners of the digital asset ecosystem,” Zane Glauber, who leads Galaxy’s blockchain infrastructure team, said Friday in the statement.
Galaxy Digital’s purchase of CMF brings its total assets under stake to roughly $3.3 billion, according to the company’s statement. Galaxy Digital did not immediately respond to Decrypt’s request for comment on the terms and timing of the deal.
ETFs stoke ETH staking
Galaxy Digital’s play for CMF’s staked Ethereum tokens comes as U.S. regulators appear poised to green light the first batch of spot Ethereum ETFs for trading next week.
It’s a development that could bring the token’s holders big returns: Bitwise Chief Investment Officer Matt Hougan predicted Wednesday that the funds’ approvals could push ETH’s price to $5,000.
Speculation that ETH’s price will skyrocket in the near future has led to a broader increase in tokens being locked up on the Ethereum network. As of publication time, more than 33 million Ethereum tokens (worth $114 billion), or roughly 27% of the total ETH supply, is being staked and earning rewards, Coinbase’s data shows.
Edited by Andrew Hayward
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Source: https://decrypt.co/240631/galaxy-digital-acquires-1-billion-ethereum-cryptomanufaktur
