Abraxas Capital Management Ltd, a popular London-based investment management platform, has recently experienced notable losses. As per the data from Lookonchain, a couple of accounts recently started shorting leading to a notable $190M in unrealized losses for Abraxas Capital Management Ltd. As the on-chain analytics revealed, the accounts are shorting as wider hedging against spot crypto holdings. The crypto assets included in the shorting strategy include Bitcoin ($BTC), Ethereum ($ETH), Sui ($SUI), Hype ($HYPE), and Solana ($SOL).
Ethereum Shorts Account for $144M out of $190M in Abraxas Capital’s Unrealized Losses
With this shorting plan carried out by 2 accounts, Abraxas Capital has reportedly witnessed nearly $190M in losses. The biggest losses reportedly stemmed from the Ethereum ($ETH) shorts. In this respect, the $ETH shorting led to a loss of over $144M in terms of unrealized declines. As a result of this, the current Ethereum ($ETH) holdings of Abraxas Capital stand at 113,819 $ETH, denoting $483M.
The data also discloses that the short exposure of Abraxas Capital is also significant in relation to the overall market liquidity. Though the losses seem steep, the market onlookers consider the short positions to be operating as a hedge instead of speculative bets. Often, the big asset managers utilize this approach to offset their downside risks amid the market volatility.
Highlighting Crypto Derivatives’ Double-Edge Nature
According to Lookonchain, Abraxas Capital’s losses of $190M from shorting denote the high-risk/reward nature of the broader derivative strategies dealing with crypto markets. Hence, amid the fluctuating prices of $BTC, $ETH, and others, the ultimate outcome of the platform will be based heavily on overall market trends as well as likely reversals. Currently, the portfolio of the platform displays a textbook case presenting the likelihood of massive losses as well as revenue flows driven by hedging strategies.
