Fifth Richest Crypto Investor Rethinks ETH Investment Strategy

James Fickel, the founder of the Amaranth Foundation, which supports longevity research, is also known as the fifth richest crypto investor globally. On August 10th, Fickel partially closed a multi-million dollar long Ethereum (ETH) position against Bitcoin (BTC) due to recent news related to Wrapped Bitcoin (wBTC).

A Lookonchain report reveals that Fickel began initiating long positions on Ethereum against Bitcoin on January 10th. He employed a sophisticated decentralized finance (DeFi) approach involving lending, borrowing, and trading assets.

Diamond Hands

Fickel provided lending liquidity on Aave (AAVE) as collateral to borrow 3,061 Wrapped Bitcoin (wBTC). He utilized this $172 million wBTC loan to acquire 56,445 ETH over the past seven months. Lookonchain estimates an average ETH/BTC exchange rate of 0.05424.

As of April 2024, James Fickel was the fifth richest cryptocurrency investor globally, with a net worth exceeding $446 million. Data provided by Arkham Intelligence on August 11th indicates his crypto net worth has risen to $457.39 million. His portfolio primarily includes 133,516 AETHWSTETH ($420 million) and 10,601 AETHWETH ($28.49 million), along with smaller amounts of wETH, ETH, USDC, Optimism (OP), and other cryptocurrencies.

Risk Management

In addition to his active role in cryptocurrency investing and enthusiasm for Ethereum, Fickel and his Amaranth Foundation are engaged in cutting-edge research on longevity and neuroscience, focusing on solutions for aging.

His recent trading activity reflects his strong belief that ETH will outperform BTC in 2024. However, with his latest transactions, there is speculation about whether his confidence remains as firm. Alternatively, his recent comments on the BitGo and Justin Sun partnership concerning wBTC might suggest that the repayment is part of a risk management strategy rather than a sign of diminished belief in Ethereum.