$12.42 million invested in gold tokens, what does this shift in strategy by this giant whale mean

A whale who once made big moves in the BTC and ETH markets has recently shifted focus to gold tokens. Since early October, this major holder has spent a total of $12.42 million purchasing XAUt and PAXG, and driven by rising gold prices, has already realized a unrealized profit of $410,000. This is not just a transaction but also reflects a new approach to asset allocation among on-chain large holders.

The Whale’s New Strategy

Gold Tokens Become the New Focus

According to the latest news, this whale made another move on January 5th, spending $8.5 million to buy gold tokens XAUt. Combining this with its ongoing positioning since early October, the whale has invested a total of $12.42 million, acquiring 2,371.4 XAUt and 559.7 PAXG at an average price of $4,239.

With gold prices rising, this investment has now generated an unrealized profit of $410,000. Although the profit margin relative to the total investment is modest (about 3.3%), it highlights the stability and hedging characteristics of gold tokens in the current market.

Comparing the Whale’s Past Actions

The recent moves of this whale are quite intriguing. According to reports, the whale engaged in a bold ETH trade in November—buying 22,880 ETH at $3,570 (totaling $81.68 million)—but sold it a week later at $2,970, incurring a loss of $13.73 million.

After this loss, the whale began adjusting its strategy. Starting from January 2nd, it gradually shifted into gold tokens, showing a more cautious and pragmatic approach.

The Logic Behind the Strategy Shift

Why Choose Gold Tokens

XAUt and PAXG are on-chain gold-backed tokens representing ownership of physical gold. Compared to highly volatile cryptocurrencies, these tokens offer greater stability and hedging features.

After experiencing losses with ETH, the whale’s move into gold tokens may be driven by several considerations:

• Reducing volatility risk and seeking relatively stable assets
• Leveraging the convenience of on-chain gold tokens (tradeable, transferable)
• Adjusting asset allocation amid increasing crypto market uncertainty
• Exercising caution regarding global geopolitical and economic developments

The Significance of Market Signals

When such a large holder begins shifting toward safe-haven assets, it often indicates a reassessment of risk by market participants. Although this whale’s past performance isn’t perfect, its substantial capital and ongoing rebalancing activities are noteworthy—possibly signaling a cautious sentiment among on-chain large holders about the current market environment.

Summary

This whale’s transition from aggressive crypto asset trading to a more stable gold token strategy reflects two notable trends: first, market participants are reevaluating the balance between risk and reward; second, on-chain gold tokens are becoming more attractive as hedging tools. While the $12.42 million investment and $410,000 unrealized profit may not seem extraordinary in absolute terms, this strategic adjustment itself is a signal—showing that even large holders are learning to allocate assets more cautiously amid crypto market uncertainties. It will be interesting to observe whether this whale continues increasing its gold token holdings and whether other on-chain large holders follow suit with similar rebalancing strategies.