MetalphaPro takes the lead with a daring acquisition of 18,000 Ethereum (ETH) worth approximately $48 million. This acquisition greatly enhances their footprint in the emerging world of decentralized finance (DeFi). This acquisition follows the institutional crypto manager’s month of strategic moves in April. These moves are indicative of a larger trend of growing adoption toward DeFi protocols like Aave and Spark. The firm’s activities are a major signal of a growing trend among institutional investors seeking to capitalize on opportunities within the growing DeFi space.
Before MetalphaPro made the ETH purchase, they withdrew assets from the Binance exchange. The fact that the transaction took place just 10 hours after the delivery of their damaging report shows a well-thought out plan.
Just earlier this month, MetalphaPro made a 25 million USDC deposit on Binance. Shortly after this deposit, the firm extracted 7,000 ETH, about $11.12 million at the time, from the exchange. MetalphaPro, as a whole, has now pulled out 29k ETH from Binance. Based on our data analysis, we estimate the average purchase price of ETH withdrawn by MetalphaPro is $1,680.
MetalphaPro’s engagement includes staking ETH in Aave and Spark. The firm makes its returns by lending the assets out through various DeFi protocols. At the same time, it gets to keep title to the underlying assets. This method tracks with the institutional crypto managers developing interest in using DeFi to earn yield.
All of the firm’s activities come as a growing wave of institutional crypto managers pushes on. Corporate America is increasing its bet on cryptos. Just recently, for instance, Sharplink announced an eye-popping $1 billion ETH buyback.
