FameEX Hot Topics | 10x Research Views Ether Shorts as Ideal Bitcoin Hedge

A recent 10x Research report warns that Ethereum faces deep structural risks as Bitcoin captures the lion’s share of institutional capital. With BTC drawing treasury allocations from major investors, Ethereum-centric firms are rapidly exhausting their cash reserves—or “dry powder”—leaving ETH exposed. Analysts see this imbalance as a prime shorting opportunity, allowing investors to hedge digital asset exposure while Bitcoin thrives amid market caution.

The report contrasts Bitcoin’s dominance with Ethereum’s crumbling “digital asset treasury” model. Institutions previously scooped up ETH via opaque PIPE deals, then distributed tokens to retail buyers at marked-up prices. This profitable loop is now fracturing due to unclear disclosures and erratic capital flows, weakening Ethereum-focused companies. Shorting ETH, the analysts assert, offers a strategic counterbalance to Bitcoin’s resilience in uncertain times.

BitMine exemplifies the broken cycle. The firm let institutions acquire ETH at face value before selling to retail at premiums, creating a feedback loop that propped up prices. That engine is stalling, amplifying downside risks. Technical signals reinforce the bearish case: a break below $3,000 support could send ETH tumbling to $2,700. 

Fifteen Ethereum treasury firms collectively hold 4.7 million ETH, highlighting concentrated vulnerability. BitMine towers with 3.3 million ETH, followed by SharpLink (859,853 ETH) and Bit Digital (150,244 ETH). This heavy reliance on a handful of players underscores Ethereum’s fragility, validating 10x Research’s call for caution and tactical shorts.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.