Trend Research has been actively reducing its Ether exposure amid rising liquidation risks. As the price of ETH hovers near critical levels below $1,700, the investment firm has taken significant steps to safeguard its assets.

This past week, Trend Research sold off a staggering 404,090 ETH, dropping its holdings from approximately 651,170 ETH to about 247,080 ETH. The decision comes in light of a severe market downturn that has seen ETH prices plummet nearly 30% in a matter of days. On Friday, ETH was trading as low as $1,748, a stark contrast to $1,967 earlier in the week.

The Ethereum investment vehicle has been restructuring its treasury in response to this market crash, making it necessary to liquidate some of its assets to repay loans. Data from blockchain analysis firm Arkham reveals that Trend Research has transferred over 411,075 ETH to the cryptocurrency exchange Binance since the month began. This trend signals a proactive approach to risk management as the company navigates volatile market conditions.

The firm is closely monitoring its liquidation thresholds, which are situated between $1,698 and $1,562. These levels are critical as they indicate the points at which Trend Research could face forced liquidation if ETH prices continue to decline. Jack Yi, the founder of the Hong Kong-based crypto venture firm Liquid Capital, is at the helm of this strategy.

Yi previously accumulated Trend Research's ETH holdings through a methodical approach: purchasing ETH on exchanges, using those assets as collateral on Aave for stablecoin borrowing, and reinvesting those funds into more ETH. Despite acknowledging that he may have prematurely predicted a bottom in crypto valuations, Yi remains optimistic about a market recovery while emphasizing the importance of risk management.

Notably, the recent liquidation event that impacted the market in October 2025, which saw $19 billion wiped from the crypto space, has cast a long shadow over investment strategies. This backdrop of uncertainty has compelled Trend Research to act decisively. Had the firm maintained its aggressive accumulation strategy, it would have ranked as the third-largest holder of Ether by December.

While Trend Research is not listed publicly, its activities have garnered attention and speculation. Bitmine, on the other hand, is the largest public corporate holder of Ether, sitting on approximately $8 billion in unrealized profits as of last Friday. This stark contrast in approaches highlights the varying strategies that firms are employing amid this downturn.

As the crypto landscape evolves, firms like Trend Research are tasked with navigating a maze of risks and opportunities. The market's volatility requires a delicate balance between holding assets for potential gains and managing liquidity to avoid forced liquidations.

In conclusion, the actions taken by Trend Research reflect a broader trend in the crypto industry, where firms are increasingly focused on risk management and liquidity. With the market in flux, the future remains uncertain, but the emphasis on strategic asset management will likely play a pivotal role in how firms weather the storm ahead.