1inch Investment Fund Acquires $10m in $ETH

Blockchain data indications have revealed that 1inch Investment Fund, the investment arm of 1inch Network, recently acquired acquired a substantial amount of Ether (ETH) on itscrypto wallet.

The purchase, which amounts to 6,088 ETH bought at a price of $1,655 each, translates to an investment exceeding $10 million at the time of purchase. Blockchain analytics platform Lookonchain first highlighted this large transaction, drawing attention to the fund's continued interest in the crypto market.

1inch Investment Fund wallet spent $10M to buy 6,088 $ETH at $1,655 6 hrs ago.

The wallet bought a total of 17K $ETH($26.8M) at an average price of $1,569 on Jan 13, Feb 9 and Mar 14.

Then sold 11K $ETH($21M) at $1,906 on July 5, making ~$3.7M.https://t.co/QhEm3M9Mm7 pic.twitter.com/JUxzA8hFom

— Lookonchain (@lookonchain) August 28, 2023

The investment comes on the heels of a profitable period for the 1inch-affiliated wallet. Earlier this year, the wallet had made sizable investments in ETH, buying around 17,000 ETH at an average price of $1,569 across three different instances—January 13, February 9, and March 14. The cumulative spend for these earlier investments was approximately $26.8 million.

In July, the fund took advantage of favorable market conditions and sold off 11,000 ETH when the cryptocurrency's price peaked at $1,906. This sale resulted in a revenue of roughly $21 million, thereby fetching a profit of around $3.7 million from its Ether holdings alone. According to blockchain data, this calculated approach to buying low and selling high has paid off well for the fund.

The acquisition and sale pattern indicates a strategic investment approach that appears to rely on dollar-cost averaging (DCA) and taking profits when market conditions are optimal. It also showcases the fund's risk diversification tactics, as the wallet reportedly holds a broad range of digital assets currently valued at around $80 million. Such portfolio diversification is often seen as a prudent strategy in the volatile cryptocurrency markets. The fund's recent actions raise pertinent questions about its future investment orientation and whether it will continue to realize profits through similarly strategic engagements in the cryptlo markets.

This acquisition is not merely a one-off purchase but also offers broader insights into market behavior and sentiment. Given that Ethereum is one of the main blockchains and cryptocurrencies that often influences and reflects market dynamics, such large-scale buying activity suggests a level of confidence in the digital asset’s future performance.

Disclaimer: This article is for informational purposes only and should not be construed as financial or investment advice.