Bhutan's National Fund Reduces Ethereum Holdings, Signaling Crypto Investment Risk Management

Recent blockchain data reveals significant activity from Druk Holdings, the agency managing Bhutan’s national wealth fund. In early February, this entity related to the Bhutanese government made a substantial adjustment to its Ethereum portfolio, reducing its holdings by 26,535 ETH within 24 hours. This move indicates an active strategy to manage exposure to digital assets amid the evolving market dynamics.

Leverage Position on Aave: Yellow Zone Risk Management

According to BlockBeats analysis, the Aave account associated with Druk Holdings’ address shows conditions requiring attention. The account health score is currently at 1.17—close to the critical threshold. At the same time, the position holds 51,710.6793 stETH as collateral, with an outstanding debt of 79.75 million USDT. These figures reflect a relatively aggressive leverage strategy, where any ETH price fluctuations could significantly impact the overall health of the position.

Ownership Evolution: From a Peak of 117,000 ETH to Rebalancing

To understand the full context, it’s important to note that at the end of January, the address linked to Druk Holdings had built a very large long position in Ethereum. At its peak, the holding reached approximately 117,000 ETH—demonstrating Bhutan’s serious commitment of its national funds to the Ethereum ecosystem. The reduction of 26,535 ETH in early February is not just a routine transaction but an indication that the institution is proactively rebalancing its portfolio in response to dynamic market conditions.

Market Context and Adjustment Strategy

With Ethereum’s price continuously fluctuating around $2,050 per coin, risk management of leverage becomes increasingly relevant. Bhutan’s reduction of its position can be understood as a prudent effort to reduce exposure to volatility and to optimize the debt-to-collateral ratio on the Aave platform. This decision aligns with best practices in risk management, especially as the account health score approaches warning zones.