Ethereum Primed to Crush Bitcoin? Galaxy’s Novogratz Predicts Imminent Flip

Move over, Bitcoin—Ethereum's gunning for the throne. Galaxy Digital CEO Mike Novogratz just dropped a bombshell: ETH’s dominance may hit sooner than anyone expected. Here’s why the smart money’s shifting.

The Scaling Revolution (That Actually Works)

While Bitcoin maximalists nap on their cold wallets, Ethereum’s Layer 2 ecosystem now processes transactions at Visa speeds—minus the 3% gouging. Developers aren’t just building here; they’re colonizing.

Institutional FOMO Hits Overdrive

BlackRock’s ETH ETF approval triggered a $9B tidal wave of institutional inflows last quarter. TradFi dinosaurs finally get it: programmable money beats ‘digital gold’ for yield-starved portfolios.

The Cynical Take

Let’s be real—Wall Street only cares because they can charge 2-and-20 on ETH staking derivatives. But hey, if it burns more gas fees into ETH’s deflationary furnace, we’ll take it.

One thing’s clear: The flippening isn’t coming. It’s already here—you just haven’t checked the chain metrics lately.

Novogratz’s thoughts on Ethereum

Replying to whether Novogratz chose to buy Bitcoin or Ether, he said that he already holds both. Then, he explained why he is betting on ethereum these days. 

Novogratz said, “If [Ether] takes out $4,000, it goes into price discovery, and so we feel kind of destined to at least knock on the 4,000 ceiling a few times.” He outlined the shifting position in Ether’s performance, claiming that the market doesn’t reflect the power of Ether’s narrative and the growing corporate demand for this asset. Novogratz went so far as to forecast that Ether will outperform Bitcoin in three to six months.

The companies buying ETH referred to by Novogratz are BitMine Immersion Technologies and Sharplink Gaming, which reportedly hold 566,766 ETH and 360,807 ETH, respectively. Soon, these companies will be joined by Ether Machine, which plans to get a Nasdaq listing soon with a $1.5 billion Ether bet.

Galaxy’s focus switches from Bitcoin to Ethereum

Galaxy’s digital asset holdings are not limited to Ether. For instance, it also holds bitcoins. As of July 25, Galaxy’s BTC holdings amounted to 13,504 units. Novogratz is not bearish on Bitcoin. During the same interview on CNBC, he predicted that bitcoin would soon reach $150,000 and expressed little to no doubt about a bullish outcome, at least if Trump doesn’t change his stance on rate policy.

We are heading towards $150,000 for Bitcoin $GLXY CEO says pic.twitter.com/52oKf8983G

However, on CNBC, Novogratz’s company was introduced as “Ether MicroStrategy of sorts,” and that’s for a reason. First off, following the interview, Galaxy continued to offload its bitcoins to various crypto exchanges. Around 40,000 bitcoins bought earlier from a 2011 Bitcoin whale were transferred to exchanges on July 25. The company sold 10,000 BTC, earning over $1 billion worth of BTC, causing the BTC price to drop from $119,000 to $115,000. According to Lookonchain findings, over $2 billion worth of BTC is still on exchanges. 

Update:#GalaxyDigital has transferred nearly 30,000 $BTC($3.5B) out today, most of which went directly to exchanges and were sold.

Then #GalaxyDigital withdrew 1.15B $USDT from exchanges.#GalaxyDigital still holds 18,504 $BTC($2.14B).https://t.co/bVtNwP2iXI pic.twitter.com/Wv1cD3aHbf

It’s unclear whether Galaxy will dispose of all its bitcoins. It doesn’t seem probable given Novogratz’s bullish views on Bitcoin. 

The second reason why Galaxy is rather an “Ether MicroStrategy” than a Bitcoin treasury is that lately it has increased its involvement in the race for Ethereum. According to Arkham, Galaxy holds 64,858 ETH (around $241.5 million) on its balance. Ether stack remains the second-biggest digital holding of Galaxy.

On July 15, a piece titled “Beyond Bitcoin: Ethereum as a Corporate Treasury Asset” was published on the Galaxy website. It was written by a research analyst, Christopher Rosa. The study analyzes the performance of several Ethereum treasury companies and concludes that, unlike Bitcoin with its passive accumulation strategy, Ethereum offers more options like staking or DeFi yielding methods, which create additional leverage for Ethereum treasury companies. 

On top of that, Rosa emphasizes that, unlike Bitcoin treasuries relying on issuing convertible debt to buy BTC, the four biggest ETH treasuries buy ETH through equity issuance, avoiding debt-related risks. Generally, the article outlines Ether’s advantages over Bitcoin as a corporate treasury asset, which signals Galaxy’s changing pivot.

Bullish case for Ethereum

The snowballing bullish news about Ethereum continues to roll throughout July. After a long period of Ethereum hate and unfavorable comparisons of the legendary platform to Solana, Ether finally gains momentum. 

Various analysts believe Ether has all the reasons to go higher. For instance, Arthur Hayes of BitMEX anticipates Ether to gain $10,000 by the end of the year. It’s worth adding that he believes Bitcoin will reach $250,000 by that time, so it’s not a bet against Bitcoin.

While Novogratz says Ether can outperform Bitcoin, in some metrics, Ether is already outperforming it. For instance, lately, Ether ETFs have been much more active than Bitcoin ETFs. Ether ETF inflows increased over 10x in July. In six days, they gained over $2.4 billion, with BlackRock’s ETHA becoming a leading crypto ETF, attracting $1.79 billion in inflows and managing over $10 billion. Bitcoin ETF inflows during the same period amounted to “only” $827 million.

LOOK OUT: $ETHA just hit $10b in one year flat, the 3rd fastest ETF to hit that mark in history after (you guessed it) two bitcoin ETFs $IBIT & $FBTC. Amazingly it went from $5b to $10b in just 10 days (ETF asset equiv of a God candle). Is in Top 5 in flows 1M, 1W. Sister Hazel! pic.twitter.com/Jrrb15BdHV

Companies continue to grow their ETH treasuries, and new players emerge. As the U.S. adopted the GENIUS Act, which sets rules for stablecoin issuers and generally facilitates such business in America, Ethereum, a LAYER 1 blockchain, is expected to benefit significantly from the stablecoin boom. As the Ether boom is a relatively new trend, it is difficult to predict its direction at this point.