Ethereum Set to Outpace Bitcoin Sooner Than Expected, Says Galaxy CEO

In a revealing interview on July 24, 2025, Galaxy Digital CEO Mike Novogratz predicted that Ether (ETH) could outperform Bitcoin (BTC) in the near term, stating that Ethereum may “knock on the $4,000 ceiling a few times” within the next three to six months. His comments—aired during a CNBC segment—come amid notable shifts in Galaxy’s crypto holdings and a broader wave of institutional interest in Ethereum.

The conversation has sparked speculation about whether Galaxy Digital is transitioning from a Bitcoin-heavy strategy to a more Ethereum-centric approach, especially following the company’s large BTC transfers to exchanges shortly after the interview.

Novogratz’s ETH Outlook and Galaxy’s Strategic Moves

During the interview, Novogratz made it clear he continues to hold both Bitcoin and Ether. However, he explained that his current enthusiasm lies with Ethereum, citing the market’s undervaluation of its narrative strength and growing corporate demand. He asserted that once Ether breaches the $4,000 threshold, it could enter a period of price discovery, opening the door to significant upside potential.

Recent activity supports Galaxy’s shift toward Ethereum. The firm transferred 10,000 BTC to exchanges shortly after the CNBC interview, part of a broader movement involving up to 40,000 bitcoins acquired from a long-dormant wallet dating back to 2011. These transfers led to a selloff that netted Galaxy over $1 billion in realized gains and pushed Bitcoin’s price down from $119,000 to $115,000. Data from Lookonchain indicates that over $2 billion worth of BTC still remains on exchanges, suggesting that Galaxy may not be done reshaping its portfolio.

Despite the selloff, Novogratz hasn’t turned bearish on Bitcoin. He projected a bullish target of $150,000 for BTC, contingent in part on U.S. monetary policy decisions. However, the company’s increasing Ethereum activity paints a picture of a more nuanced strategy—one that positions Ethereum as a growing priority.

Ethereum’s Rise as a Corporate Treasury Asset

Galaxy’s evolving focus aligns with a broader industry trend: corporations are beginning to view Ethereum not just as a speculative asset, but as a functional treasury tool. Firms like BitMine Immersion Technologies and Sharplink Gaming currently hold over 566,000 and 360,000 ETH respectively. Joining them soon will be Ether Machine, a company preparing for a Nasdaq debut with a $1.5 billion Ethereum commitment.

Galaxy itself holds 64,858 ETH, valued at approximately $241.5 million, making Ether the second-largest crypto asset on its books. This increased exposure aligns with a thought leadership piece published on Galaxy’s website on July 15, titled “Beyond Bitcoin: Ethereum as a Corporate Treasury Asset.” Authored by research analyst Christopher Rosa, the article outlines why Ethereum may be a superior treasury option compared to Bitcoin.

The report highlights Ethereum’s yield-generating capabilities—through staking and decentralized finance (DeFi)—as key differentiators. It also emphasizes how Ethereum treasury strategies often involve equity-based purchasing, avoiding the debt burdens commonly associated with Bitcoin purchases. These qualities, Rosa argues, make Ethereum a more flexible and financially prudent choice for corporate treasuries.

Ethereum Gathers Momentum Across the Market

July has brought a surge of positive sentiment for Ethereum, following a period where the network faced criticism and was often unfavorably compared to faster competitors like Solana. That tide now appears to be turning.

Well-known analysts such as Arthur Hayes, co-founder of BitMEX, are bullish on both Ethereum and Bitcoin. Hayes predicts Ether could reach $10,000 by year-end, with Bitcoin climbing as high as $250,000—highlighting confidence in both assets, rather than viewing them as mutually exclusive.

Ethereum also appears to be outperforming Bitcoin in some institutional metrics. ETH ETFs have seen a significant rise in activity, with July’s inflows exceeding $2.4 billion. BlackRock’s ETHA ETF alone brought in $1.79 billion, pushing its assets under management past $10 billion. In contrast, Bitcoin ETFs attracted roughly $827 million over the same period, suggesting that capital inflow momentum is tilting toward Ether.

Policy Tailwinds and What Lies Ahead

Regulatory developments are also contributing to Ethereum’s bullish narrative. The recent passage of the GENIUS Act in the U.S. offers regulatory clarity for stablecoin issuers—a key component of the Ethereum ecosystem. Since many stablecoins are built on Ethereum, the network is expected to benefit from this renewed legitimacy and growth in the digital dollar market.

As more companies expand their ETH holdings and market conditions align in Ethereum’s favor, the landscape appears increasingly favorable for continued Ether growth. While it’s still early to determine how far this trend will go, Ethereum’s positioning as both a functional and strategic asset is beginning to reshape the crypto investment playbook.

Galaxy Digital may not be abandoning Bitcoin, but its growing engagement with Ethereum signals a pivot—one that’s being echoed by other corporations and market players. Whether Ether will indeed outperform Bitcoin in the months ahead remains to be seen, but one thing is clear: Ethereum is no longer playing second fiddle. It’s staking its own claim as a core pillar in the institutional crypto ecosystem.