Arthur Hayes Moves Millions Out of ETH, Builds Large Stablecoin War Chest
Arthur Hayes, the co-founder of crypto exchange BitMEX, appears to have continued reducing his exposure to Ethereum throughout December, fueling market speculation that the outspoken investor is actively selling ETH as part of a broader portfolio rotation.
On-chain data shows that Hayes has been steadily withdrawing ETH from his wallet and transferring it to centralized exchanges, activity that typically signals an intent to sell.
While Hayes has not directly confirmed each transaction, the moves align closely with a portfolio rebalancing strategy he has publicly outlined in recent months, suggesting a deliberate shift rather than panic-driven selling.
More Ethereum Moves to Exchanges
According to blockchain analytics account Lookonchain, Hayes deposited an additional 682 ETH on Binance in the past 24 hours. The transaction was valued at roughly $2 million and was followed by redeployments into decentralized finance (DeFi) tokens.
That sale comes on top of earlier activity reported earlier this month, when Hayes transferred 508.6 ETH—worth about $1.5 million at the time—to Galaxy Digital. Combined, these transactions indicate that Hayes has sold approximately 1,871 ETH over the past week, with an estimated total value of $5.53 million.
Rather than moving fully into cash, he appears to be selectively rotating capital into higher-risk segments of the market. On-chain records show that the proceeds were used to purchase DeFi-related tokens, including Ethena (ENA), Pendle (PENDLE), and Ether.fi (ETHFI).
Betting on Beaten-Down DeFi Tokens
Market data indicates that the tokens Hayes accumulated have suffered steep drawdowns in 2025, with prices down between 80% and 90% year to date. The timing suggests Hayes is positioning himself for a potential rebound, viewing current prices as deeply discounted rather than structurally broken.
Hayes has previously articulated his thesis publicly.
In a post on X, he said he was rotating out of ETH and into what he described as “high-quality DeFi names,” arguing that these assets could outperform once global fiat liquidity conditions begin to improve.
Portfolio Shift Becomes Clearer
A closer look at Hayes’ broader portfolio using data from Arkham shows a dramatic change in allocation. Hayes’ ETH holdings have been declining for years, falling from roughly 16,000 ETH in 2022 to about 6,500 ETH by November of this year. Since then, his ETH balance has dropped further to approximately 3,160 ETH, implying sales of more than 3,440 ETH over a relatively short period.
Arthur Hayes’s Investment Portfolio (Source: Arkham)
At the same time, stablecoins have taken on a much more prominent role. Out of a total portfolio valued at around $73.9 million, nearly $48 million is now held in USDC.
That means stablecoins account for more than 60% of the portfolio’s total value, a sharp increase from earlier in the year.
Arkham data shows that Hayes’ USDC holdings surged from roughly $1 million in mid-November to nearly $48 million today. This accumulation occurred while broader crypto market sentiment remained in the “fear” to “extreme fear” range, a period when many traders either step back or quietly prepare for future opportunities.
Caution or Dry Powder?
Large stablecoin balances are often interpreted in two ways: as a defensive posture or as dry powder waiting to be deployed.
In Hayes’ case, the simultaneous rotation into deeply discounted DeFi tokens suggests a hybrid approach—reducing exposure to ETH while maintaining flexibility to re-enter risk assets if conditions improve.
The moves stand in contrast to Hayes’ previously bullish long-term outlook on Ethereum. In past commentary, he has argued that ETH could eventually reach $20,000 and once suggested that holding 50 ETH could be enough to make an investor a millionaire by the next U.S. presidential election.
For now, however, the on-chain evidence points to a tactical shift rather than a complete change in conviction.
