How a Bitcoin "Whale" Invested in Ethereum to Make a Profit of 100 Million USD

A sleeping Bitcoin whale has re-emerged with a decisive shift towards Ethereum, taking profit of over 100 million dollars in unrealized gains as ETH prices surged. On August 22, the blockchain tracking tool Lookonchain marked this wallet after it began loading ETH through both spot purchases and leveraged trading. The Ethereum Position of Bitcoin Whale is Worth Over $850 Million This whale, who received over 100,000 BTC nearly seven years ago, has made its first large purchase of Ethereum, including a $270 million purchase for 62,914 ETH and a long-term buy position in much larger derivatives worth $580 million for 135,265 ETH. These transactions signal a deliberate reallocation of holdings from a significant Bitcoin holder at that scale.

On August 23, this whale also sent 300 BTC in two separate transactions to the derivatives platform Hyperliquid, indicating that this is a deliberate plan to expand their exposure to Ethereum rather than just making a one-time allocation. With the current market price, these transactions have generated profits. Lookonchain estimates that the derivatives position has increased by about 58 million dollars, while spot trading has generated around 42 million dollars in paper profit. In total, the wallet currently holds over 100 million dollars in profit just from this turnaround. Besides profits, the movements of whales indicate a broader market trend showing that Ethereum is gradually attracting more liquidity and market interest. The report from CEXIO shows that the trading market share of Ethereum on major centralized platforms increased to over 32% in August, the highest level since 2017.

According to the company, the change is partly due to retail investors, who have increased participation in trades valued under $3,000, and institutions following up with larger trades. Additionally, CEX.io points out that the net position data shows that Ethereum increased by 23% in August, while Bitcoin decreased by 43%. This movement indicates that the capital flow is shifting towards ETH, reflecting a change in traders' sentiment. Therefore, it is no surprise that Ethereum has risen to a new all-time high after the risk appetite improved across the cryptocurrency market following Federal Reserve Chairman Jerome Powell's speech at Jackson Hole.