James Fickel, the prominent founder of the Amaranth Foundation, is grappling with significant losses in his ETH/BTC long position as the pair plummets to levels not seen since April 2021. According to on-chain data, Fickel is facing an eye-watering loss of over 23,000 ETH, worth approximately $57.9 million, as the ETH/BTC rate tumbled to 0.03685. This marks a sharp downturn in the market, erasing nearly 57.88% of his portfolio value.
James Fickel (@jamesfickel) is losing over 23K $ETH ($57.9M) on his ETH/BTC long position as the pair hits its lowest since April 2021!
Notably, after the rate fell to 0.037 over the last 2 days, James Fickel further swapped 4,418 $ETH ($11.13M) for 166 $WBTC, reducing his… https://t.co/qShcXm4wgr pic.twitter.com/LqQbwHuQ7g
— Spot On Chain (@spotonchain) October 25, 2024
In response to the ETH/BTC decline, Fickel has been actively reducing his exposure to Ethereum. Over the past two days, after the pair fell to 0.037, he executed a significant swap of 4,418 ETH, worth around $11.13 million, for 166 WBTC (Wrapped Bitcoin). This follows a similar move 37 days earlier, where he also trimmed his ETH position.
The latest transactions on his portfolio show that Fickel still owes 1,116.6 WBTC, valued at approximately $75.5 million, on the lending platform Aave. In a potential sign of further repositioning, he recently requested to withdraw 4,731 ETH from Lido, suggesting more swaps could be on the horizon.
Loan Repayment Strategy
Once a fervent supporter of ETH/BTC longs, Fickel has shifted strategy since mid-August. On August 11, he began unwinding his positions, swapping 15,000 ETH, worth about $37.4 million at the time, alongside 12 million USDC to secure 841.7 WBTC, valued at $49.4 million. His aim appears focused on repaying his substantial loan on Aave, where he borrowed a significant amount of WBTC.
Fickel’s most recent swap involved exchanging 5,000 ETH, valued at $11.3 million, for 204.8 WBTC at a rate of 0.041 over the past six days. The series of transactions underscores his intent to mitigate losses by reducing Ethereum exposure and repaying his obligations in Bitcoin.
Despite his efforts to manage the downturn, James Fickel still has a considerable loan outstanding. He currently holds 2,236 WBTC, worth around $130 million, in borrowed assets. As the ETH/BTC pair continues to struggle, the question remains whether Fickel’s risk management will suffice to stave off further losses in the volatile market.