Arthur Hayes is back in focus because of where his money is moving.
As Ethereum trades sideways near the key $3,000 level, the BitMEX co-founder has begun trimming his ETH exposure and rotating into decentralized finance tokens, a shift that’s catching attention across the crypto market.
Hayes was open about it on X: “We are rotating out of $ETH and into high-quality DeFi names, which we believe can outperform as fiat liquidity improves.”
Hayes Moves Millions Out of ETH
On-chain data shows that on December 19, Hayes transferred 508.647 ETH worth about $1.5 million to Galaxy Digital. Today, he moved another 680 ETH, valued at roughly $2.03 million, explicitly to sell and rotate into high-quality DeFi tokens, according to Lookonchain.
These transfers come at a sensitive moment for Ethereum. ETH has struggled to move decisively above resistance and is currently consolidating slightly below $3,000. Spot Ethereum ETFs are also suffering through 7 continous days of outflows, adding pressure.
Market analysts say ETH needs to hold current levels to avoid a deeper pullback toward the $2,700-$2,800 zone, while a clean break above $3,200 could restore momentum.
DeFi Rotation Takes Shape
Lookonchain confirmed that Hayes recently bought 1.22 million ENA, showing active rotation into what he describes as “high-quality” DeFi assets.
His view is that improving fiat liquidity may benefit DeFi tokens more than large-cap layer-one assets like Ethereum, especially if risk appetite remains strong.
That stance has sparked debate, with some traders pointing out DeFi’s higher volatility during liquidity shifts.
Just a Short-Term Strategy?
Despite the selling, Hayes’ long-term view on Ethereum is unlikely to change as he has often defended its potential. This is also why the announcement came as a surprise to many.
For now, the market response has been measured. Derivatives volatility remains muted, suggesting caution rather than panic.
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