Tom Lee Ties Ethereum Selloff to Quarter-End Window Dressing

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Bitmine Chairman Tom Lee tied Ethereum’s (ETH) 8% weekly drop to quarter-end window dressing, arguing funds trimmed three-month losers.

The executive made the comments as Bitmine reported holdings of 5,700,040 ETH worth roughly $9 billion.

Lee Frames ETH Drop as Quarter-End Window Dressing

Window dressing refers to fund managers selling underperforming positions before quarter-end reporting dates. The practice allows them to present portfolios with fewer losing positions to clients, even though it does not improve the portfolio’s actual performance or returns.

Lee pointed to the term when describing Ethereum’s recent slide.

“This past week was a challenging one for crypto investors as ETH fell by 8% … We are nearing quarter-end for June, and it is not surprising to see ‘window dressing’ leading to investors reducing their holdings in assets which have fallen in the past 3 months,” he said.

The drop fits a wider decline. Ethereum has fallen nearly 22% over the past month, outpacing Bitcoin’s (BTC) 19% loss. It is also on track for a third consecutive red quarter.

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Treasuries Keep Buying as ETH Trades Below Cost

Nonetheless, Bitmine kept accumulating through the weakness. The firm acquired 27,084 ETH last week.

Its stake now equals 4.7% of the 120.7 million ETH supply, or 94% of its “Alchemy of 5%” target.

“The future roadmap for crypto remains positive as the dual drivers of Wall Street modernizing its legacy infrastructure on crypto rails and the future of agentic-AI payment systems on crypto rails remain intact. Bitmine remains focused on the longer-term horizon and continues to manage the company to be positively positioned for these exponential drivers,” Lee added.

Meanwhile, the second-largest Ethereum holder, SharpLink, has also resumed buying. The firm restarted its accumulation after an eight-month pause.

According to Lookonchain, it has acquired 39,196 ETH. Despite the renewed buying, SharpLink still holds an unrealized loss of nearly $1.7 billion, with an average acquisition cost of about $3,609 per ETH.

The renewed buying signals conviction among large holders even as prices sit far below their entry points. Whether quarter-end reporting marks a turn or deeper weakness may become clearer in July.

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