James Fickel, an early Ether (ETH) investor, has lost $43 million this year by betting against Bitcoin (BTC). Fickel, a popular figure in the crypto community, believed that ETH would outperform BTC in 2024. As a result, he employed a strategy on the DeFi protocol Aave, trading Wrapped Bitcoin (WBTC) for ETH, which has not worked out in his favor.
Fickel gained recognition for his early investments in Ethereum, purchasing $400,000 worth of ETH when each coin was priced at just $0.80. He is also the founder of the Amaranth Foundation, a company focused on longevity and neuroscience research.
Despite his successful early bets on Ethereum, Fickel’s latest trades have led to significant losses. According to blockchain analysis firm Lookonchain, Fickel borrowed 3,061 WBTC from Aave and exchanged them for 56,445 ETH between January and July. Recently, Fickel has been repaying his Aave debt by trading 16,000 ETH for 671 WBTC, losing around 18,000 ETH in total, valued at $43.7 million.
Fickel’s strategy relied on ETH outperforming BTC, but the reverse happened. Data from Binance shows that ETH’s price relative to BTC has dropped 24% year-to-date (YTD), with a 9% decline in the past month alone.
ETH’s Price Struggles After ETF Launch
Fickel’s losses are exacerbated by Ethereum’s underperformance after the launch of spot ETH ETFs in the US in July. While many expected the ETFs to drive up ETH’s price, they have had little impact. Conversely, the launch of BTC ETFs sparked a bullish run for Bitcoin, pushing the asset to a new all-time high of over $73,000 a few months later.
Despite the challenges, Fickel’s experience highlights the unpredictable nature of the crypto market, where even seasoned investors can face significant losses.
