Investment fund World Liberty Fi has executed a significant portfolio reallocation, moving a portion of its assets from Wrapped Bitcoin (WBTC) into Ethereum (ETH). Blockchain data from Lookonchain reveals the fund withdrew 162.69 WBTC (valued at approximately $14.98 million) from an Aave vault and subsequently swapped 27.12 WBTC (worth $2.5 million) for 770.6 ETH.
The swap was facilitated using decentralized trading infrastructure, specifically the Cow Protocol aggregator, which is integrated with Aave. This move is part of a strategic shift by the fund away from low-yield Bitcoin-based assets in DeFi. The annualized yield on Aave's WBTC vault had fallen to just 0.1%, prompting the reallocation.
In contrast, Wrapped ETH (WETH) currently offers a more attractive 3.81% yield on Aave following a recent governance vote. The fund now holds over 770 WETH, which it views as a more agile and utility-rich asset for DeFi collateral and operations. At the time of the swap, ETH was trading at $3,255.21.
The broader context shows a decline in WBTC's market presence, with its total supply hitting an all-time low of 124,963 tokens, a trend exacerbated by major holders like FTX exiting their positions. World Liberty Fi has effectively decoupled its Bitcoin holdings from active DeFi strategies, concentrating its on-chain exposure on Ethereum and its wrapped variants.
Concurrently, the fund is aggressively expanding the reach of its native stablecoin, USD1. Its total supply has reached a new all-time high of over 3.38 billion tokens. While initially concentrated on BNB Chain (now 61% of supply, down from 94%), USD1 is seeing robust growth on Ethereum and Solana, with new listings on Raydium and Aster DEX, as well as new trading pairs on Binance.
