Michael Novogratz, CEO of Galaxy Digital on Thursday said Ethereum (CRYPTO: ETH) has a chance to outperform Bitcoin (CRYPTO: BTC) over the next three to six months as institutional capital begins to rotate deeper into Ethereum.

What Happened: The remarks came during an interview with CNBC, where Novogratz discussed macroeconomic tailwinds and capital inflows driving momentum in the crypto market.

Galaxy’s bullish stance on Ethereum is also evident in its onchain activity.

According to blockchain intelligence platform Arkham, Galaxy Digital currently holds over 52,000 ETH valued at approximately $193.95 million, making it the firm’s second-largest crypto position after Bitcoin.

“If ETH takes out 4,000, it goes into price discovery,” Novogratz said. “The market was really short ETH, and now we have major treasury companies raising capital and buying Ether. There’s not a lot of supply.”

Also Read: Ethereum, XRP Sink While Bitcoin Holds: What’s Going On With Altcoins?

Why It Matters: Bitcoin remains the largest holding in Galaxy’s crypto portfolio at over 13,500 BTC, worth $1.57 billion, followed by 328,959 Solana (CRYPTO: SOL) worth roughly $59.3 million.

Other holdings include stablecoins like USDC (CRYPTO: USDC) and USDT (CRYPTO: USDT), and real-world asset tokens like Sonic (CRYPTO: S).

Galaxy’s total visible crypto portfolio value sits just below $1.9 billion, Arkham data shows.

That figure has surged alongside Bitcoin’s rise above $115,000 and Ethereum’s rally toward the $4,000 mark.

Novogratz noted that the broader macro environment, defined by political pressure on the Fed to lower rates and a global reflation push from countries like China, has created a tailwind for “inflation trades” like gold, silver, and crypto assets.

“We’re in price discovery in many of these markets,” Novogratz said. “Bitcoin could easily reach $130K to $150K, but Ether’s supply dynamics and growing adoption make it compelling.”

Galaxy’s ETH holdings support this outlook.

The fund has added significantly to its Ethereum position during the past two quarters, according to Arkham’s historical balance chart, with an observable increase in mid-2024.

The broader Ethereum ecosystem has seen renewed interest with the rise of ETH-based treasuries, staking products, and upcoming scalability upgrades.

With ETF applications pending and layer-2 activity rising, institutional ETH accumulation is expected to continue.

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