Abraxas Capital Leverages Ethereum LST Ecosystem to Drive Significant Market Rebound

Recently, Bitcoin and Ethereum have driven a significant rebound in the crypto market, with a significant increase in market capital activity and frequent whale capital movements.

Recently, Bitcoin and Ethereum have driven a significant rebound in the crypto market, with a significant increase in market capital activity and frequent whale capital movements. Among them, London-based asset management company Abraxas Capital has become a focus of attention in this round of rebound due to its high-frequency on-chain operations and heavy Ethereum DeFi strategy. More than 270,000 ETH were raised in a single week, and the Ethereum LST ecosystem was heavily invested

In recent times, Abraxas Capital has been active on the chain. According to Arkham data, as of May 20, the total value of crypto assets held by Abraxas Capital's two related public addresses has exceeded US$1.15 billion, with a cumulative profit of approximately US$280 million.

From the perspective of asset structure, in addition to Bitcoin worth more than $190 million, Abraxas Capital's investment portfolio is highly concentrated in the Ethereum Liquid Staking Token (LST) track, which is used for staking or as collateral in various DeFi protocols. Its main holdings include AwETH, wstETH, awstETH and weETH, among which AwETH and wstETH have a total holding amount of more than $700 million, accounting for the absolute majority of its overall assets. This type of asset has both on-chain staking income and secondary market liquidity, which also reflects that Abraxas Capital pursues a balance strategy between stable income and flexible position adjustment.

From the perspective of the pace of fund growth, the asset size of the institution has significantly accelerated since mid-February 2025, and recently exceeded the $1 billion mark. In the past week alone (May 13-20), its net assets increased by more than $130 million, mainly due to a substantial increase in AwSTETH (Aave v3 wstETH) positions, with an increase of more than $120 million.

In terms of capital flow, in the past 7 days, Abraxas Capital has withdrawn nearly 270,000 ETH from CEX (centralized exchange), completing about 6 purchase transactions per day on average, with a cumulative value of more than 690 million US dollars. Based on its average purchase price of US$2,573.8, compared with the current ETH market price of about US$2,500, this part of the position is currently in a temporary floating loss of about US$11 million.

It is worth noting that Abraxas Capital has significantly reduced its holdings of Bitcoin within a month. On-chain data shows that in the past few weeks, the institution has transferred a total of 2,000 BTC to exchanges, worth more than $190 million. However, it has recently begun to increase its holdings again, withdrawing about $85 million worth of Bitcoin from exchanges.

According to Arkham data, Abraxas Capital's ETH funds mainly flow to Ethereum DeFi protocols. In the past 7 days, Abraxas Capital has also transferred more than 174,000 ETH to mainstream DeFi protocols such as Aave, Ether.fi, and Compound, with a total value of approximately US$440 million at current prices. In particular, Aave is the main use of Abraxas Capital's ETH holdings, and it currently holds an asset position of more than US$480 million on AAVE V3.

From this point of view, Abraxas Capital is becoming one of the more active and heavily invested institutional players in the Ethereum ecosystem, and is strengthening the liquidity and revenue reuse rate of assets by deeply participating in the DeFi market.

The asset size exceeds 3 billion US dollars and was once a major customer of Tether

Abraxas Capital Management is an asset management company headquartered in London and regulated by the UK Financial Conduct Authority (FCA). It aims to become a top asset management institution. The company was co-founded in 2002 by Fabio Frontini and Luca Celati, who were both senior executives at Dresdner Kleinwort Wasserstein (DRKW) in London.

Abraxas Capital initially focused on the traditional financial sector, and on-chain data shows that the company had begun to deploy Bitcoin assets as early as the end of 2014. In 2017, Abraxas Capital announced that it would shift its business focus to digital assets.

Heka Funds is Abraxas Capital's core investment platform focused on digital assets. It is headquartered in Malta and regulated by the Malta Financial Services Authority (MFSA), with assets exceeding US$3 billion.

As a multi-fund investment company, Heka currently manages three major funds: Elysium Global Arbitrage Fund was launched in 2017 and is the first digital asset fund officially licensed and officially operated in the European Union. It has achieved a return rate of 214.95% since