OG whale dumps $4.1b BTC for ETH as market spotlight shifts

A long-time Bitcoin whale has been shuffling their portfolio in recent weeks, offloading their holdings to build significant new positions in ETH.

On-chain tracker Lookonchain first flagged the portfolio activity in late August. The whale, who received more than 100,000 BTC ( BTC ) about seven years ago, has begun one of the largest rotations the market has seen.

At the time of reciept, their stash was worth just around $642 million and today, is valued at over $11 billion. Blockchain data shows that over a five-day period, the whale deposited about 22,700 BTC to Hyperliquid and swapped it for nearly half a million ETH ( ETH ). He also opened a long position of more than 130,000 ETH, showing that spot buys were only part of the plan.

The activity did not stop there. Long positions were closed in profit, with proceeds rolled into new ETH spot buys. Fresh deposits of BTC kept arriving, each trade adding more Ether to the growing pile.

At press time, the whale holds about 886,000 ETH worth more than $4 billion, after recently selling another 2,000 BTC for nearly 49,000 ETH. With such a massive shift ongoing, the focus now turns to why this Bitcoin OG has chosen Ether as his new play.

Why is the whale offloading BTC for ETH?

The whale’s buying comes as the market focus shifts to Ether. Over the past few months, Ethereum has stood out as a favorite among retail and institutional investors alike, significantly outperforming Bitcoin.

Despite broader market volatility, ETH is up approximately 25% in the last 30 days, while Bitcoin has slid roughly 4% during the same period. 

Spot Ether ETFs in the US now hold more than 23 billion dollars in assets, and have commanded strong investor attention in recent months, while Bitcoin-tracking funds struggle to keep pace. At the same time, corporate accumulation of ETH has grown at a rapid pace. Recent market data shows that about 71 companies now hold a combined 4.44 million ETH in their treasuries. That total is valued at nearly 19.7 billion dollars. 

The steady growth in institutional ETH holdings surpasses BTC’s by a wide margin, reflecting strong demand. This trend is happening alongside rising interest in regulated products. Flows into Ether investment vehicles have been particularly strong, and in mid-August, Ethereum led digital asset fund inflows with about $2.87 billion, representing the majority of all crypto product inflows that week.

Together, these factors help explain why a major Bitcoin holder may now see Ether as the better long-term bet.