FameEX Hot Topics | 10x Research Recommends Shorting ETH as BTC Hedge

According to a recent 10x Research report, Ethereum is grappling with structural vulnerabilities as Bitcoin continues to dominate institutional capital inflows. This shift positions ETH as a potential shorting opportunity for investors seeking to hedge their exposure to the broader digital asset market. The analysts highlight that while Bitcoin attracts treasury allocations from institutions, Ethereum-focused entities are depleting their financial reserves, or "dry powder," exacerbating the asset's weaknesses.

The report emphasizes Bitcoin's role as the primary institutional focus, contrasting it with Ethereum's faltering "digital asset treasury" narrative. Institutions have historically accumulated ETH through private investment in public equity (PIPE) deals, only to distribute it to retail investors at a premium. This cycle is now unraveling due to opaque disclosures and uncertain capital flows, leaving Ethereum companies vulnerable. Shorting Ethereum, the analysts argue, serves as an effective hedge against Bitcoin's strength amid prevailing market caution.

A key case study is BitMine, which enabled institutions to acquire ETH at par value before offloading it to retail buyers at higher prices, fueling a self-reinforcing price loop. This mechanism is breaking down, signaling broader risks. Technical indicators further support a bearish outlook: if ETH's support near $3,000 breaks, prices could drop to around $2,700. 

Currently, 15 Ethereum-centric treasury companies hold a collective 4.7 million ETH. BitMine leads with approximately 3.3 million ETH on its balance sheet, followed by SharpLink at 859,853 ETH and Bit Digital with 150,244 ETH. These holdings underscore the concentration of risk in the Ethereum ecosystem, reinforcing 10x Research's view of structural fragility.

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