Trend Research, an investment firm led by Jack Yi, has exited Ethereum entirely, reportedly locking in losses close to $750 million as the token’s broader downturn persisted. The firm moved 651,757 ETH, worth about $1.34 billion, to Binance at an average price of $2,055, leaving only 0.0344 ETH, roughly $72, according to on-chain tracking.
Lookonchain estimated the total loss at about $747 million. Arkham data showed the post-sale wallet with residual balances of roughly $10,000 in USDC plus minor amounts of other tokens. This was not a routine trim, it was a decisive capitulation-style exit under market stress. The near-zero ETH balance signals full disengagement from the thesis, not just a tactical hedge. The report said the firm began transferring ETH to Binance at the start of the month and completed the sell-off yesterday, effectively putting timing and scale at the center of the Ethereum-bottom debate.
Sell-off finished!#TrendResearch has deposited all 651,757 $ETH($1.34B) into #Binance at an average price of $2,055.
The total loss is ~$747M.https://t.co/e2L0pYGex3 pic.twitter.com/QpxMw6qoGc
— Lookonchain (@lookonchain) February 8, 2026
How a recursive Aave strategy set the unwind in motion
The unwind followed a leveraged strategy built on the DeFi lending protocol Aave. Trend Research initially purchased ETH on centralized exchanges, deposited it as collateral on Aave, borrowed stablecoins against that collateral, and repeatedly reinvested the borrowed funds into additional ETH purchases, creating a recursive leveraged position that significantly increased exposure and liquidation risk. The loop effectively stacked leverage on leverage as conditions worsened, with borrowed capital recycled. The structure boosts exposure, but it also amplifies liquidation risk when prices trend lower.
As ETH continued to decline, the position moved closer to liquidation thresholds; rather than risk forced liquidation, the firm chose to unwind voluntarily. A separate commentator described the trade as a $2.6 billion leveraged ETH long that was later sold down for $1.74 billion to repay loans, leaving losses near $750 million. In execution terms, the firm traded upside convexity for survivability and tighter balance-sheet control.
Why the exit is being read as a bottom-adjacent signal
The sell-off landed in a volatile tape for Ethereum. ETH declined 32.4% over the past month, dipped below $2,000 on Feb. 5, then recovered to $2,094.16, up about 0.98% over 24 hours. Trend Research’s exit is the “largest capitulation signal,” forced exits often cluster near major lows. Joao Wedson, founder of Alphactal, said ETH bottoms typically arrive months before Bitcoin’s due to a faster liquidity cycle in altcoins, and he pointed to indicators suggesting Q2 2026 as a potential bottom window, with realized losses likely to rise as capitulation plays out. Meanwhile, BitMine has taken the opposite approach and continued accumulation, including a recent $42 million ETH purchase.
If capitulation is real, aggressive buyers may be positioning for a recovery; if downside persists, Trend’s de-risking may look prudent. Either way, the divergence highlights how institutional sentiment can split between de-risking and accumulation.
