Home Crypto Exchanges WLFI Transfers $300M in ETH & WBTC to Coinbase

WLFI Transfers $300M in ETH & WBTC to Coinbase

Crypto transfer

World Liberty Financial (WLFI), a family-run firm associated with Eric Trump, has recently made headlines by transferring significant amounts of digital assets, including Ethereum (ETH) and wrapped Bitcoin (WBTC), to Coinbase Prime. The transaction has raised eyebrows, as it involves over $300 million worth of cryptocurrencies. While Eric Trump had previously expressed confidence in Ethereum, the sale of such a substantial amount of ETH by WLFI has led to a backlash in the crypto community. The firm has defended its move, stating that these transactions were not part of a liquidation but rather a routine reallocation of assets.

Details of the Transfer and the Reaction

WLFI’s actions have caught the attention of both analysts and traders. According to data from LookOnChain, WLFI transferred 86,296 ETH valued at approximately $235 million, as well as 647 WBTC worth around $65.5 million. Other tokens, including Chainlink (LINK) and Aave (AAVE), were also involved in the transfer, which altogether amounted to $316.8 million. Despite the size of the transfer, WLFI also acquired $5 million worth of ETH on the same day, which further confused some market participants.

Eric Trump, in the past, had expressed his belief that Ethereum was in an ideal position for investment. His bullish stance on ETH created an apparent contradiction, as the firm’s actions seemed to suggest a move in the opposite direction. The crypto community responded with skepticism, with one critic accusing WLFI of using positive market sentiment on ETH as an opportunity to offload substantial portions of their holdings onto the market.

WLFI’s Defense

WLFI responded to the backlash by clarifying that the asset transfers were part of normal treasury operations, not a sale. The firm stated that it was simply reallocating assets for routine business purposes, such as payment of fees, expenses, and to address working capital needs. The statement emphasized that the company was not selling its crypto holdings but was merely shifting assets as part of its regular business operations.

Despite this clarification, some remain unconvinced. The timing and scale of the move, especially after Eric Trump’s bullish comments, have made it hard for some in the crypto community to see it as anything other than a strategic exit.

Market Impact and Hedging Activity

The transfer came at a time when Ethereum’s price was experiencing significant volatility. Following WLFI’s actions, Ethereum’s price saw a sharp decline, dropping from $3,285 to $2,065 on the Deribit exchange. This price drop triggered an increase in put options, which are used as a hedge against further declines. The put-call ratio, which indicates the balance between bullish and bearish sentiment, spiked from 0.6 to above 2.5, signaling that traders were preparing for potential further losses. This shift in market sentiment has led to heightened caution among Ethereum traders.

Many market participants have started to hedge their positions against further price declines in the coming days, and the options market suggests a cautious outlook for Ethereum. While WLFI maintains that its actions were part of routine business operations, the timing and scale of the transactions have contributed to a sense of uncertainty.

What’s Next for Ethereum and WLFI?

The transfer of such a large sum of crypto assets, coupled with the timing of the move, has left Ethereum’s price vulnerable to further downward pressure. The increase in hedging activity indicates that market participants are wary of additional declines in Ethereum’s value. If Ethereum continues to face downward price action, WLFI’s move could be seen as a precautionary measure to secure its holdings in a volatile market.

In the coming days, Ethereum’s price movements will likely remain under close scrutiny. The continued rise in put options and bearish sentiment suggests that market participants are bracing for potential declines. Whether WLFI’s decision to move its assets is indicative of broader market trends remains to be seen, but the crypto community will undoubtedly continue to monitor the situation closely.

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Julie J

Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.

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