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In a bold move that has caught the attention of the cryptocurrency market, Michael Novogratz’s Galaxy Digital Holdings has made a significant purchase of 6,000 ETH worth $19.8 million.

This acquisition comes amid a backdrop of increasing institutional interest in Ethereum, indicating a growing recognition of its potential.

The purchase also comes at a time when Ethereum's price has experienced a notable drop, a factor that did not deter the investment firm from capitalizing on the opportunity.

Besides Galaxy Digital, Asia-based blockchain-focused venture capital firm Fenbushi Capital has also snapped up a sizable quantity of ETH: 5,207.4 ETH worth $17.2 million.

According to Lookonchain, Fenbushi Capital and Galaxy Digital withdrew ETH from Binance after the market fell. Fenbushi Capital withdrew 5,207.4 ETH worth $17.2 million from Binance, and Galaxy Digital withdrew 6,000 ETH worth $19.8 million a few hours later.

Both acquisitions occur at a time when Ethereum, the second-largest cryptocurrency by market value, has seen volatility due to macroeconomic uncertainty and regulatory developments.

Ethereum declined for two days in a row to begin the new month and quarter as the U.S. dollar unexpectedly strengthened.

The second-largest cryptocurrency by market cap plunged as low as $3,211, taking its two-day loss to over 7%. As of the time of writing, ETH has risen 0.13% in the previous 24 hours to $3,340, as the market persists in lackluster trading.

Despite ETH's present price action, Galaxy Digital's decision to accumulate Ethereum now might suggest a long-term strategy that looks beyond current market swings.

This strategy appears to be paying off as, according to recent reports, Galaxy Digital turned a profit, with its shares up about 39% this year after nearly tripling in 2023.