Trend Research Sells Entire Ethereum Position With $747 Million Loss

TLDR

• Trend Research sold 651,757 ETH worth $1.34 billion at an average price of $2,055, locking in losses of approximately $747 million
• The firm used a leveraged DeFi strategy on Aave protocol, borrowing stablecoins against ETH collateral to buy more ETH repeatedly
• Ethereum has dropped over 30% in the past month, pushing Trend Research’s position close to liquidation thresholds
• The firm chose to exit voluntarily rather than face forced liquidation as ETH price continued declining
• Founder Jack Yi admitted his market bottom call came too early but says he remains optimistic about future recovery

Trend Research has sold its complete Ethereum holdings after a leveraged investment strategy backfired during the recent market downturn. The investment firm, led by Jack Yi who also founded Liquid Capital, offloaded over 651,000 ETH tokens in recent days.

On-chain analytics platform Lookonchain confirmed the firm completed the massive sell-off on February 8. Trend Research transferred 651,757 ETH to Binance at an average price of $2,055 per token. The total value of the sale reached approximately $1.34 billion.

The exit left Trend Research with virtually no Ethereum holdings. Data from Arkham Intelligence shows the firm now holds just 0.0344 ETH valued at around $72. The wallet contains roughly $10,000 in USDC and small amounts of other tokens.

Lookonchain calculated the total loss at nearly $747 million. This represents one of the largest institutional crypto losses recorded in recent months. The loss stems from Ethereum’s broader price decline over the past month.

Leveraged DeFi Strategy Led to Mounting Risk

Trend Research built its Ethereum position using a complex leveraged strategy on Aave. The firm initially purchased ETH on centralized exchanges and deposited the tokens as collateral on the DeFi lending protocol. It then borrowed stablecoins against this collateral.

The borrowed stablecoins were used to purchase additional Ethereum. This process was repeated multiple times, creating a recursive leveraged position. The strategy amplified both potential gains and liquidation risks.

Blockchain data shows Trend Research held roughly 651,170 ETH on February 2. By February 7, the balance had dropped to about 247,080 ETH. More than 404,000 tokens were sold in less than one week.

Arkham reported that 411,075 ETH moved to Binance since the start of February. BeInCrypto first reported the firm began transferring Ethereum to exchanges at the beginning of the month. The transfers accelerated as Ethereum’s price continued falling.

Price Decline Pushed Position Toward Liquidation

Ethereum has declined more than 30% over the past month. The price dropped to a low near $1,748 before recovering to around $1,967. This steep decline placed Trend Research’s leveraged position under severe pressure.

According to Lookonchain, the firm faced multiple liquidation levels between $1,698 and $1,562. Further price declines could have triggered automatic collateral sales on the Aave platform. Trend Research chose to unwind the position voluntarily rather than face forced liquidation.

Jack Yi acknowledged on social media that his earlier market bottom prediction was premature. He stated he remains optimistic about Ethereum’s future and will continue managing risk while waiting for recovery. Yi did not provide details on future investment plans.

Trend Research first gained attention after a $19 billion crypto liquidation cascade in October 2025. The firm began aggressively accumulating Ethereum following that market event. By December, Trend Research would have ranked among the largest ETH holders globally.

The firm does not appear on most public corporate treasury trackers because it is privately held. This makes tracking its exact holdings and strategy more difficult than public companies.

Other Firms Take Opposite Approach

While Trend Research exited its position, other crypto investment firms are taking different approaches. BitMine recently purchased $42 million worth of Ethereum despite mounting unrealized losses. The firm continues to increase its exposure to ETH.

The contrasting strategies highlight the ongoing debate about Ethereum’s market bottom. Some analysts view capitulation events like Trend Research’s exit as potential signals that prices may be near a floor. Others remain cautious about further downside risk.

Trend Research moved 651,757 ETH worth approximately $1.34 billion to Binance at an average price of $2,055 in early February 2026.

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