Abraxas Capital buys $32M in ETH to hedge $353M short position

Abraxas Capital Management has reportedly acquired approximately 13,000 ETH in the spot market, valued at roughly $32.39 million, to hedge a significant short position. On-chain data shows several inflows from Binance into a wallet attributed to the firm, totaling nearly 13,000 ETH.

The spot purchase appears to be a strategic move to mitigate risk associated with a massive short position on Hyperliquid. The firm currently holds a short position of 141,180 ETH, valued at approximately $353.27 million. This market-neutral approach aims to earn the spread between spot and derivatives, such as funding payments, rather than betting on the direct price movement of Ethereum.

This activity follows a pattern established by the fund in August, when it built a $783 million Hyperliquid short hedged by withdrawing over 73,000 ETH from Binance. While the large short position could be interpreted as a bearish outlook, the simultaneous acquisition of spot assets suggests a hedging strategy designed to protect against price volatility.