Peter Thiel’s Founders Fund has fully divested from ETHZilla, a digital asset treasury firm holding Ethereum. This exit by Thiel, considered “smart institutional capital,” signals potential sentiment shifts away from Ethereum exposure.
The move occurs amid a crypto market downturn; Ethereum fell 28.4% in Q4 2025 and continued declining in early 2026.
Digital asset treasury firms are under strain, with reduced crypto holding values and pressured stock prices.
ETHZilla, once holding over 100,000 ETH, sold $40 million in Ether in October and $74.5 million in December.
It now holds 69,802 ETH and is shifting strategy via ETHZilla Aerospace, seeking tokenized exposure to leased jet engines.
