Abraxas Capital Dumps Bitcoin, Buys the Dip into Ethereum With $561M

Reallocating its digital asset portfolio, Abraxas Capital has sold Bitcoin and invested $561 million into Ethereum in a major shift within the terrain of cryptocurrencies.

Abraxas Capital has sold Bitcoin and invested $561 million into Ethereum in a calculated move that reallocates its digital asset portfolio. This move, completed over 10 hours on May 7, sees Abraxas buying almost 242,651 ETH, which was borrowed using USDT to fund the purchase in a leveraged investing approach meant to maximize Ethereum’s expected expansion.

The company's activity was noted for its scale and speed. Transaction values varied from 2,101 to 6,497 ETH, or $5.44 million to $17 million at current prices, executed across 189 transactions.

The bulk of the ETH was withdrawn from major exchanges like Binance.

This accumulation was also accompanied by a reduction in Abraxas Capital's Bitcoin reserves. The company pulled 2,49 BTC from different exchanges, valued at $250 million. But by May 8, 2025, it had returned 1,000 BTC to Kraken, keeping just 983 BTC, shifting from Bitcoin to Ethereum in its investment portfolio.

The value of Ethereum rose in exact line with the large investment Abraxas Capital made. Over 72 hours, ETH's price went up by 44%. This went from around $1,800 to more than $2,600.

This rebound showcases institutional investments as the main driver of market momentum, presenting Ethereum's best three-day performance since January 2021. With Ethereum currently trading at around $2,558.08, the positive response from the market to higher institutional interest is evident.

Abraxas Capital's action aligns with the growing investor sentiment favoring Ethereum's ecosystem and use cases for greater long-term value compared to Bitcoin. Ethereum's prominence in decentralized finance (DeFi), non-fungible tokens (NFTs), and smart contract applications showcases it as a versatile platform with vast potential for future expansion.

Such large-scale institutional shifts could signal a new phase in the crypto market, pivoting from Bitcoin's dominance to recognize Ethereum's multi-faceted value propositions.