2026-01-20 01:25:08

Interesting on-chain movement—Bhutan's sovereign wealth fund Druk Holdings' associated wallet recently started leveraging on Aave. According to data tracked by Arkham, this address withdrew 42,000 ETH and 54 million USDT from a major exchange in one go, then swapped the stablecoins for Ethereum and deposited them into Aave, borrowing out 275 million USDT to continue buying. Now, this position has expanded to 117,000 ETH, worth approximately $459 million. What are institutions doing? You can tell by looking at the blockchain. When a sovereign fund starts using leverage to go long on ETH, it more or less indicates confidence in Ethereum's prospects.

AAVE-0,33%

ETH-2,48%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

7 Likes

Reward
7
4
Repost
Share

Comment

0/400

LiquidityOracle

· 5h ago

Sovereign funds are all starting to use leverage to sweep ETH, this signal is too strong, I have to admit.

View OriginalReply0

StableNomad

· 5h ago

alright so druk holdings is literally doing the thing institutional capital does when it thinks the floor is in... funny how nobody talks about liquidation risk though. statistically speaking that's 117k eth on borrowed liquidity and that's giving me UST flashbacks honestly. not financial advice but the risk-adjusted returns gotta be astronomical to justify that leverage ratio, no?

Reply0

MultiSigFailMaster