Peter Thiel's Fund Exits Ethereum Investment – ETHZ Shares Drop in After-Hours Trading
Market Reaction: ETHZilla shares fell more than 5% in overnight trading after regulatory filings revealed that Peter Thiel's Founders Fund had completely exited its position in the company, leading to significant losses among crypto-linked equities.
Ethereum Holdings: ETHZilla previously held over 100,000 Ethereum but sold substantial portions during the crypto downturn to fund buybacks and reduce debt, ultimately reporting zero shares owned by Thiel's Founders Fund.
Current Financial Status: The company has around 65,786 ETH left on its balance sheet, valued at approximately $138.82 million, with its average purchase price significantly below Ethereum's current trading range.
Future Plans: ETHZilla announced a new subsidiary called ETHZilla Aerospace, which plans to offer tokenized access to equity in leased jet engines, indicating a shift beyond just Ethereum investments to diversify its balance sheet.
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Market Reaction: ETHZilla shares fell more than 5% in overnight trading after regulatory filings revealed that Peter Thiel's Founders Fund had completely exited its position in the company, leading to significant losses among crypto-linked equities.
Ethereum Holdings: ETHZilla previously held over 100,000 Ethereum but sold substantial portions during the crypto downturn to fund buybacks and reduce debt, ultimately reporting zero shares owned by Thiel's Founders Fund.
Current Financial Status: The company has around 65,786 ETH left on its balance sheet, valued at approximately $138.82 million, with its average purchase price significantly below Ethereum's current trading range.
Future Plans: ETHZilla announced a new subsidiary called ETHZilla Aerospace, which plans to offer tokenized access to equity in leased jet engines, indicating a shift beyond just Ethereum investments to diversify its balance sheet.

Market Trends: Kevin O'Leary highlights that institutions have favored Bitcoin and Ethereum, which account for most of the cryptocurrency market's upside amid volatility, while expressing concerns about the potential threat of quantum computing to crypto security.
Price Decline: Bitcoin's price has dropped nearly 46% since its record high in October, trading around $68,400, while Ethereum has also seen a decline, dipping below $2,000 after briefly crossing that threshold earlier.
Investor Sentiment: Retail sentiment around Bitcoin has shifted to neutral from bullish, with many investors remaining cautious and disciplined in their approach, particularly in light of deteriorating market conditions.
Institutional Participation: O'Leary notes that institutional participation in crypto is likely to remain limited to around 3% of portfolios, as large investors are cautious about allocating more due to current market conditions and the risks posed by emerging technologies like quantum computing.

Market Sentiment: Cryptocurrency market sentiment has remained in an "Extreme Fear" territory throughout February, with many retail traders expecting Bitcoin to fall below $50,000 in the coming months.
Altcoin Decline: The altcoin market has seen a significant decline of around 21% in 2026, with Ethereum contributing largely to this downturn, currently trading below the $2,000 mark.
Fear and Greed Index: The Crypto Fear and Greed Index has reached record lows, similar to levels seen during the COVID-19 crash in March 2020, indicating a drop in market sentiment over the past month.
Future Predictions: Most traders believe Bitcoin's price is likely to crash below $50,000 in the next three months, with only a small percentage forecasting a recovery above current levels.
Ethereum Fund Inflows: Fidelity Ethereum Fund and Grayscale Ethereum Mini Trust saw combined inflows exceeding $110 million, while outflows from Bitwise and iShares Ethereum ETFs reduced the overall net inflow for the day.
Retail Sentiment Trends: Most Ethereum ETFs maintained a 'neutral' retail sentiment, except for Grayscale's Ethereum Mini Trust, which experienced a bearish trend.
Ethereum Price Struggles: Ethereum's price struggled to stay above the $2,000 mark, declining by 2.8% in the last 24 hours amid Bitcoin's price drop.
Other Cryptocurrency Trends: Solana and XRP ETFs faced outflows, with Solana's total net asset value remaining below $1 billion, while XRP maintained a steady demand with a slight price decrease.
Trend Research's Losses: Trend Research reported significant losses, totaling approximately $747 million, after leveraging around $2 billion in Ethereum, leading to a total PnL near $686 million.
Ethereum Withdrawals: The fund withdrew 792,532 Ethereum from Binance, valued at $3,267, and later deposited 772,865 Ethereum back at a lower price of $2,326, leaving a remaining balance of 21,301 Ethereum.
Market Impact: The fund's selling accelerated as Ethereum's price dropped from above $3,000 to below $1,900, prompting concerns about liquidity risks and large holder movements affecting market sentiment.
Historical Context: Since 2018, Ethereum has experienced multiple significant drawdowns, with analysts noting that sharp declines have often been followed by rapid recoveries, suggesting potential for future rebounds.

Whale Activity: A significant transaction involving 19,896 USD Coin (USDC) was made by a large holder, often referred to as a "whale."
Investment Strategy: The whale added the USDC to their existing positions in Ethereum (ETH) and Hyperliquid (HYPE), indicating a strategic investment move.
New Position: In addition to the USDC transaction, the whale opened a new long position in Bitcoin (BTC).
Market Implications: Such activities by large holders can influence market trends and investor sentiment in the cryptocurrency space.





