Abraxas Capital has expanded its Ethereum short position by $5 million, now holding a $299 million bearish bet against the cryptocurrency. This move amplifies the firm’s high-risk strategy despite incurring approximately $115 million in total floating losses across major cryptocurrency positions.
The Ethereum position, established at an average entry price of $2,826.72 per ETH, currently shows a floating loss of $78.72 million. The trade faces liquidation if Ethereum prices surge to $5,096.9—amplifying financial vulnerability. Alongside Ethereum, the hedge fund maintains a $345 million Bitcoin short position using 10x leverage, which has generated $22.3 million in unrealized losses.
Additional short bets exhibit deepening setbacks, including a $6.89 million loss on leveraged HYPE betting (5x) and an $8.51 million loss on Solana allocations (10x leverage). These leveraged positions signal Abraxas Capital’s conviction in cryptocurrency price declines, though the scale of unrealized losses challenges the strategy’s viability amidst elevated market volatility.
The firm’s 10x leveraged positions carry heightened liquidation risks. Any significant upward price shift could trigger automatic position closures, accelerating losses. This aggressive stance underscores institutional skepticism toward the cryptocurrency market despite substantial financial exposure.