DeFiance Capital Buys $114 Million Worth of ETH

Who are DeFinance Capital?

DeFiance Capital, founded by Arthur Cheo in 2020, is a venture capital fund specializing in decentralized finance (DeFi) and blockchain and has become one of the leading companies in the cryptocurrency space. The fund is headquartered in Singapore with over $1 billion in assets and focuses on DeFi, NFTs, and blockchain infrastructure.

An announcement by DeFiance Capital on the morning of July 28, 2025, shows that the fund has completed a purchase of $114 million worth of ETH on decentralized (DEX) and centralized exchanges (CEX) over the past 48 hours. This kicks off the event. After the fund raised $100 million in a new funding round on July 25, 2025, the majority of the funds were allocated to increase its portfolio in digital assets, especially ETH.

The development shows that DeFiance has been accumulating by taking advantage of ETH's slight 2.3% decline over the past 24 hours, with an average purchase price of around $3,750/ETH. The transaction was made amid a market that has seen institutional capital flowing into Ethereum; over the past week, Ethereum ETFs in the US have recorded $1.2 billion.

What is the motive of this organization?

According to the previous listing, the purchase of 114 million ETH brings DeFiance’s total ETH holdings to approximately 150,000 ETH, or $567 million. This solidifies the fund’s position as a major institutional investor in the free finance space. Staking profitability is improved, with the current yield on the Ethereum network around 3.5% annually, while also supporting strategic investments in protocols such as Aave and Uniswap. The move could boost ETH prices in the short term, especially as circulating supply decreases due to increased staking. Currently, more than 35 million ETH, or 17% of the total supply, is locked. In addition, it is likely to encourage other funds to participate in accumulation, increasing liquidity and enhancing ETH’s reputation.

But this event is still possible. First and foremost, the $114 million investment could be significantly damaged if the ETH price drops sharply, as it did in 2022 when it dropped 68%. This is especially true when DeFiance is under pressure from investors for short-term returns. Second, there is a possibility that regulations in Singapore and other countries could improve due to concerns about increased scrutiny of crypto funds after crashes like Terra Luna. Third, DeFiance’s focus on ETH could prevent them from investing in competing blockchains like Solana (60 million CU upgrade) or Aptos. This could make their portfolio less diversified. Finally, cyberattacks or smart contract bugs in the free cryptocurrency could affect the staked assets.

Conclusion and evaluation

DeFiance Capital’s purchase of $114 million in ETH on July 28, 2025, is a strategic move to demonstrate the fund’s belief in Ethereum’s long-term potential amid the thriving institutional cryptocurrency and blockchain landscape. This increase not only increases DeFiance’s financial position but also boosts the Ethereum ecosystem, which could attract other institutions to join. But for this strategy, there are risks from competition, regulation, and price volatility. The success of this strategy depends on the ability to manage risk and effectively leverage staking. This move could be a game-changer for DeFiance in a buoyant market, but it also requires caution to maintain an edge in a challenging environment.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.

Compiled and analyzed by HCCVenture

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