In a notable on-chain transaction, the 1inch team investment fund has sold a significant portion of its Wrapped Bitcoin (WBTC) holdings. According to blockchain analytics, the fund exchanged 70.76 WBTC for 6.676 million USDC at an average price of $94,346 per WBTC. This move is part of a broader strategy observed since the initial accumulation phase.
Transaction Breakdown and Historical Context
The recent sale is not an isolated event. Between February 2 and March 10, 2025, the 1inch investment fund allocated $44.22 million to acquire three primary assets: WBTC, Ethereum (ETH), and its native token, 1INCH.
Here’s a detailed look at the initial purchases:
- Ethereum (ETH): Purchased 11,198 ETH for $28.85 million, with an average entry price of $2,577 per ETH.
- Wrapped Bitcoin (WBTC): Acquired 160.8 WBTC for $14.21 million, at an average cost of $88,395 per WBTC.
- 1INCH Token: Bought 4.7 million 1INCH tokens for $1.15 million, averaging $0.245 per token.
Among these three assets, WBTC is currently the only holding in a profitable position, which likely influenced the decision to realize gains from this particular asset.
Analyzing the Fund's Strategy
The selective selling of profitable assets while holding others is a common trading and portfolio management strategy. It allows investors to secure gains from well-performing investments while maintaining exposure to assets that may have future growth potential.
For observers and analysts, the on-chain activity of large, known funds like the 1inch investment fund serves as a valuable indicator of market sentiment and potential trends. 👉 Explore more market strategies
Frequently Asked Questions
What is the 1inch team investment fund?
The 1inch investment fund is a capital pool managed by the team behind the 1inch decentralized exchange aggregator. It is used to invest in various cryptocurrency assets, and its on-chain movements are often tracked by analysts for insights.
Why did the fund sell only its WBTC?
Based on the available data, WBTC was the only asset of the three major purchases that was in a profitable position at the time of the sale. The fund likely decided to realize these gains while continuing to hold its other assets.
What does WBTC stand for?
WBTC stands for Wrapped Bitcoin. It is an ERC-20 token on the Ethereum blockchain that represents Bitcoin. Each WBTC is backed 1:1 by actual Bitcoin held in reserve, allowing Bitcoin to be used in Ethereum's decentralized finance (DeFi) ecosystem.
How can I track these kinds of transactions?
Large transactions from known wallets can be monitored using various blockchain explorers and analytics platforms. These tools provide real-time data on transfers, holdings, and the profit/loss status of different addresses.
Is this sale indicative of a market top for Bitcoin?
While large sell-offs from institutional players can sometimes signal a local market top, a single transaction is not a definitive indicator. It is essential to consider broader market trends, trading volume, and other fundamental factors before drawing conclusions.
What is the difference between BTC and WBTC?
BTC is the native Bitcoin cryptocurrency on its own blockchain. WBTC is a tokenized version of Bitcoin that exists on the Ethereum blockchain, making it compatible with Ethereum-based smart contracts and DeFi applications like lending protocols and decentralized exchanges.