Most of the redeployed funds flowed into Pendle, Lido, Ethena, and Ether.fi within minutes of the ETH sale.
Former BitMEX CEO Arthur Hayes sold a substantial portion of his Ethereum (ETH) holdings this week, redirecting millions into select DeFi tokens.
This move highlights a calculated shift in strategy from a core blue-chip asset to what he views as higher-growth opportunities within decentralized finance.
Hayes Trims ETH Exposure as DeFi Takes Priority
Blockchain analytics firm Lookonchain reported on December 31 that the BitMEX co-founder sold 1,871 ETH over the past two weeks before buying roughly $4.6 million worth of DeFi-related tokens. Initial purchases included around $1.8 million in Pendle, $1.3 million in Lido DAO (LDO), $1.2 million in Ethena (ENA), and about $340,000 in Ether.fi (ETHFI).
Minutes later, Lookonchain published a follow-up update showing Hayes doubling down on two of those positions. According to the data, he bought an additional 4.86 million ENA, worth about $986,000, and 697,851 ETHFI, valued at nearly $485,000, bringing his total redeployed capital to well over $6 million.
The trader had already telegraphed this shift earlier in the month, posting on X that his portfolio was rotating out of ETH and into “high-quality DeFi names,” arguing they could do better if fiat liquidity continues to loosen.
This is not the first time Hayes has made large-scale portfolio adjustments. In November, he engaged in a similar selling event during a market downturn, disposing of ETH, ENA, and ETHFI. That activity followed a prior sale in August, after which he humorously pledged never to take profits again.
The community response to the investor’s move has been mixed. While some observers view it as a bullish signal for the selected DeFi sector, others have urged caution. A social media user, Junar, responded to the news with a warning: “the same guy sell his assets in loss so don’t fomo buy here.”
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Price Action Paints a Mixed Picture for DeFi Bets
Price data shows why opinions remain divided. According to CoinGecko, ETH is trading around $3,000, roughly flat on the week and up close to 5% over 30 days, even as it remains about 11% lower than a year ago. By contrast, most of the DeFi tokens Hayes bought have shown short-term rebounds but remain deeply underwater on longer horizons.
At the time of writing, Pendle was near $2.00, up almost 14% on the week but down more than 60% year-on-year. Lido’s LDO was sitting around $0.60, with an 11% weekly gain that has done little to offset losses of nearly 68% across twelve months.
Meanwhile, ENA is trading close to $0.20 after slipping over 15% in 30 days and more than 75% since last year, while ETHFI is hovering near $0.70, still more than 90% below its early 2024 peak.
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