Abraxas Capital Fuels ETH Rally—Or Just Riding the Wave?
As Ethereum surges toward new highs, whispers grow louder: Is Abraxas Capital the hidden hand propping up the rally? The crypto hedge fund—known for its aggressive altcoin bets—has been conspicuously active in ETH derivatives markets.
Behind the scenes: On-chain data shows Abraxas-linked wallets accumulating ETH calls while quietly offloading BTC exposure. Their OTC desk reportedly facilitated nine-figure block trades last week—just as ETH broke $4,000.
The cynical take: Wall Street’s crypto tourists love nothing more than a good narrative. Whether Abraxas is driving the rally or simply frontrunning散户 (retail) FOMO hardly matters—as long as the music keeps playing.
Abraxas deposits ETH to Compound
In addition to the combination of Aave and Binance, Abraxas Capital also used Bitfinex to acquire more ETH on the open market.
Abraxas tested a smaller transaction, sending 2.94K ETH to the Compound Bulker wallet. After that, the fund sent another $5M in USDC to Bitfinex.
The fund’s biggest holding is AWETH, the Aave version of wrapped ETH. The wallet holds over 107K AWETH. Lido’s WSTETH is the second-biggest holding of 71.41K tokens. The wrapped versions suggest Abraxas is deeply involved with the Ethereum ecosystem, and is unlikely to quickly sell.
Whales turn bullish on ETH
The big question for ETH is whether it WOULD achieve its promised breakout to a higher price range, or even a price record in 2025. After the recent market downturn under $2,500, smart money remained bullish, while retail once again switched to bearish attitudes.
$ETH Sentiment
CROWD = Bearish 🟥
MP = Bullish 🟩
Check out sentiment and other crypto stats at https://t.co/HQDyBNuzek pic.twitter.com/F6YmfXFe9e
— Market Prophit (@MarketProphit) May 13, 2025
The recent Abraxas purchases were just the tip of the iceberg for ETH, as the chain saw record inflows into accumulation wallets over the past weekend.
Signs of whale buying also appeared in March and April, as whales were seeking to lower their average entry price for ETH. At the same time, some holder were either taking profit, or abandoning ETH after breaking even.
Ethereum has increased its on-chain activity in the past days, but returned to a relatively low baseline of gas prices. The Pectra upgrade is yet to show its full effect, but for now, gas for regular transactions is back at $0.08, while swap prices are down by 90% from peak times, to $1.34.
Ethereum carries $61.13B in total value locked, returning to the levels from February. Lido and Aave have the strongest monthly gains, increasing their total value locked by 49% and 40%, respectively. Ethereum may expect more staking after the Pectra upgrade, as whales will be allowed to lock 2,048 ETH in one deposit.
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