Abraxas Capital's Massive Short

‍

Digital assets fund manager, Abraxas Capital Management, is currently short almost $500M worth across BTC, ETH, HYPE, SOL and SUI. Their positions are held on one of their publicly tracked wallets, 0x5b5, which have opened the positions on perpetual DEX, Hyperliquid. The portfolio is currently up more than $17M.

Despite their seemingly large short, Abraxas Capital is known to run a delta-neutral fund, Elysium Global Arbitrage Fund, which has amassed more than €1.2B (~$1.376B) in assets under management since its launch in 2018. On their publicly tracked wallets, they also hold more than $464M in assets, with the majority in various liquid staked ETH and BTC tokens. As such, it is plausible that these short positions are simply the short legs of their delta-neutral positioning.

This type of strategy is a common approach for sophisticated institutional players who can profit from market inefficiencies or funding rates rather than taking a directional bet on asset prices.

‍

‍

A delta-neutral position is constructed by balancing long and short positions in the same or related assets. For example, a fund might hold a significant amount of Ethereum (or liquid staked ETH tokens) while simultaneously opening a short position of equal value on an ETH perpetual futures contract. This allows them to capture the positive funding rates often paid by shorts to longs, generating yield regardless of whether the price of ETH goes up or down.

The ability to track these colossal positions in near real-time is only possible because these positions are taking place on-chain. In traditional finance, the specific holdings of a fund like Abraxas would be disclosed only in periodic regulatory filings, if at all. However, the transparent nature of public blockchains and decentralized exchanges like Hyperliquid means that significant wallet activity can be monitored by anyone with the right tools - tools like the Arkham Intel platform. This level of transparency fosters a unique dynamic, allowing retail and institutional participants alike to analyze the strategies of major players, creating a more open financial ecosystem.