Bhutan Druk Holdings has established a 117K ETH leveraged position on Aave.

Source: CryptoNewsNet Original Title: A wallet linked to Bhutan’s Druk Holdings has built a 117K ETH position on Aave Original Link:

Bhutan Government Actively Trading ETH

The Royal Government of Bhutan’s investment company Druk Holdings is actively trading ETH. A wallet potentially associated with this holding company is building a large ETH leveraged position.

A wallet believed to belong to Druk Holdings has begun establishing an ETH leveraged position. Analysts note that an address related to Bhutan has withdrawn 42K ETH from a major exchange, along with $54 million worth of USDT.

Subsequently, these wallets purchased more ETH and deposited it into Aave, borrowing more USDT. The loan was used to acquire additional ETH. This address is marked as a whale wallet, possibly linked to Druk Holdings. Arkham has tracked this entity twice, with one wallet not marked as belonging to the Royal Government of Bhutan.

Overall, these wallets have built a position of 117K ETH, depending on the asset’s positive performance. During a bull market, lending out ETH to borrow more stablecoins is used to increase exposure, but during a downturn, it could pose liquidation risks for some wallets.

Druk Holdings Expands ETH Exposure

ETH holdings in the Bhutan Royal Government’s portfolio are relatively small. The smallest known wallet balance held by the government is 17.695 ETH. Until recently, most ETH was idle in Bhutanese wallets.

The Bhutan Royal Government held 3,000 ETH in summer 2025, later withdrawing these holdings. The initially idle ETH was deposited into multiple deposits and staked. The Bhutan Royal Government also accelerated ETH purchases starting September 2025.

The Druk Holdings entity has accumulated a small portfolio worth over $458,000, mostly in the form of AESTHWETH (wrapped ETH on Aave). Overall, this entity’s wallet has made 35 transactions on Aave, transferring $735 million over time. The entity also holds $275.6 million on Lido.

Over the weekend, the entity funded its wallets and expanded leveraged positions on Monday. If confirmed to belong to Druk Holdings, this would be one of the first leveraged ETH positions taken by a national entity. Overall, this entity’s wallet has made 35 transactions on Aave, transferring $735 million over time.

By the end of 2025, Bhutan also launched a blockchain-based national identity system, inviting Vitalik Buterin to kick off the project.

Bhutan More Actively Managing Its ETH Treasury

The marked entity has significant wrapped ETH activity on Aave and Lido. Unlike the BTC treasury, ETH holdings allow for passive income and potential yield opportunities.

In recent months, known Bhutanese wallets have transferred ETH and BTC, currently holding about $556 million, down from over $1 billion. Some BTC has been transferred to new addresses over time for security purposes.

ETH holdings have not been sold on the open market but are being utilized within the existing DeFi ecosystem. With ETH prices currently above $3,200, most positions on Aave could be liquidated at around $1,400 per ETH.