Arthur Hayes, co-founder of BitMEX and Chief Investment Officer of Maelstrom Fund, recently transferred approximately $2.5 million in Ethereum and various ecosystem tokens to several leading institutional market makers — namely Flowdesk, FalconX, and Wintermute. These notable asset movements have sparked speculation within the crypto community regarding Hayes’ possible intentions to increase his holdings in Zcash (ZEC), a prominent privacy-focused cryptocurrency.
According to blockchain analytics firm EmberCN, the transactions included 520 ETH (valued at around $1.66 million), 2.624 million ENA tokens ($730,000), and 132,000 ETHFI tokens ($120,000). Roughly 50 minutes after these transfers, Hayes sent a small test amount — 10 LDO tokens — to FalconX, suggesting further LDO activity might follow. EmberCN later confirmed that Hayes had indeed sold a significant portion of these assets: 260 ETH worth $820,000, 2.4 million ENA at $657,000, 640,000 LDO for $480,000, 1,630 AAVE tokens at $290,000, and 28,670 UNI tokens valued at $211,000. Altogether, the liquidated assets amounted to approximately $2.45 million.
While Hayes has not publicly stated the exact purpose of these asset reallocations, his recent online commentary and trading patterns strongly point toward Zcash accumulation. In mid-November, Hayes tweeted enthusiastically about ZEC’s performance, stating, “This chart is just so strong I aped more. $ZEC,” referencing the token’s dramatic 700% rally since October. His public statements have also included bold comparisons, where he asserted that “ZEC > XRP,” positioning Zcash as a potentially more valuable asset than Ripple.
Further fueling speculation, Hayes has described Zcash as “Bitcoin with full privacy,” emphasizing its potential to reach 10% to 20% of Bitcoin’s market value in the current cycle. He even went as far as to suggest that ZEC could trade as high as $10,000 to $20,000 per coin. He set an ambitious ZEC/BTC price ratio of 0.2, which would place ZEC’s value close to $19,200 if Bitcoin remained at its current levels.
Notably, Hayes revealed that Zcash has become the second-largest liquid holding in the Maelstrom Fund portfolio, surpassed only by Bitcoin. He also urged ZEC holders to take their tokens off centralized exchanges, advocating for self-custody and shielding — a feature unique to privacy coins like ZEC that allows users to obscure transaction data.
The timing of these movements is significant. Zcash has recently experienced a substantial uptick in market interest, with a 21% price increase in mid-November alone. This rise coincides with a broader resurgence in privacy coin valuations, possibly driven by increasing concerns over surveillance, regulatory crackdowns, and user demand for financial confidentiality.
Hayes’ strategy may be part of a larger macro bet on privacy coins regaining prominence in the next bull cycle. As more governments introduce stricter Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, assets like Zcash, which offer shielded transactions, may attract investors keen on preserving anonymity.
From a technical perspective, Zcash has broken key resistance levels on its trading chart, suggesting bullish momentum. If Hayes’ forecast proves accurate and ZEC captures even a modest fraction of Bitcoin’s market dominance, early investors could see exponential returns. However, it’s worth noting that privacy coins also face regulatory headwinds, with several exchanges delisting them in the past due to compliance risks.
Hayes’ decision to liquidate a diversified basket of tokens — including ETH, LDO, AAVE, UNI, and ENA — reflects a calculated reallocation rather than a wholesale exit from the market. By channeling these resources into Zcash, he’s signaling a clear conviction in the coin’s long-term potential.
Moreover, Hayes’ endorsement isn’t isolated. Other prominent figures in the crypto space have also voiced renewed interest in Zcash, citing its strong cryptographic foundation and potential for integration into decentralized finance (DeFi) protocols should privacy become a more sought-after feature.
The reemergence of Zcash in institutional narratives could also be tied to technological upgrades or upcoming catalysts in the protocol’s roadmap. If Zcash continues to differentiate itself through innovation and maintains its privacy-first ethos, it could reassert itself as a top-tier digital asset in the coming years.
In summary, Arthur Hayes’ recent token transfers appear to be more than routine portfolio adjustments. They align with his vocal support for Zcash and suggest a strategic accumulation ahead of what he believes could be a major appreciation in ZEC’s value. For investors watching closely, this could be an early signal of a larger trend — a revival of interest in privacy coins amidst a shifting regulatory and technological landscape.