David Hoffman, co-founder of Bankless, shared on X that he had completely exited his spot Ethereum holdings and quickly redistributed the capital. The move shows a decisive shift away from ETH into a basket of other crypto assets.
Immediate Reallocation Post-ETH Sale
According to Hoffman, right after selling all ETH, 50% of the proceeds were immediately used to buy VVV, NEAR, ZEC, and HYPE tokens. The other 50% was kept as a cash reserve for dollar-cost averaging, and eventually all of that was directed into LIT. This indicates a complete pivot from ETH to a set of projects he considers more promising at this stage.
The Rationale Behind the ETH Exit
Hoffman first announced his full ETH exit on May 21, and later detailed his reasoning. He emphasized that the "ETH is money" mega-narrative had not failed; instead, it had been fully priced in by the market. The Ethereum network, he argued, has already achieved a valuation that matches its current accomplishments, and ETH as an asset is unlikely to see a significant repricing—either upward or downward.
Hoffman remains extremely bullish on the Ethereum network itself, predicting an exceptional boom in its ecosystem. However, he believes that very little of that future success will translate into ETH price appreciation. His decision to sell all ETH is thus a statement about the growing disconnect between the network's value and the asset's market price, not a bearish call on Ethereum's overall trajectory.