10x Research sees shorting Ether as a Bitcoin hedge

As Bitcoin continues to pull organization treasury capital, Ethereum-focused companies are opening to tally retired of adust powder, making the plus a imaginable shorting accidental for investors looking to hedge their vulnerability to the integer plus sector.

That was 1 of the cardinal takeaways from a caller 10x Research report, which argued that shorting Ether (ETH) could beryllium a astute hedge against Bitcoin (BTC).

According to the report, Bitcoin remains the superior absorption for organization investment, portion Ether exhibits structural weaknesses. The analysts said that “digital plus treasury” narratives astir Ethereum person led institutions to accumulate ETH and aboriginal administer it to retail investors — a signifier present breaking down amid a deficiency of transparency successful backstage concern successful nationalist equity (PIPE) disclosures and uncertain superior flows.

10x Research cited treasury institution BitMine arsenic a lawsuit study, noting that its strategy “enabled organization investors to accumulate ETH astatine par and aboriginal administer it to retail buyers astatine a premium — a feedback loop that continued to thrust prices higher.”

The researchers besides pointed to respective method indicators suggesting Ether’s terms could diminution sharply if enactment adjacent $3,000 fails, perchance falling to astir $2,700.

According to the researchers, Ether’s play stochastic indicator is flashing topping signs. Source: 10x Research

“As we besides noted, the play stochastics are flashing a wide topping pattern, portion the multi-year wedge enactment has revealed a mendacious breakout, mirroring the mendacious breakdown seen backmost successful March 2025,” the researchers said.

Related: Ethereum’s terms illustration targets sub-$3K arsenic spot ETF request cools

ETH treasury companies stay bullish contempt marketplace risk

There are presently 15 Ether-focused integer plus treasury companies holding a combined 4.7 cardinal ETH, according to manufacture data.

BitMine is by acold the largest, with astir 3.3 cardinal ETH connected its equilibrium sheet. It’s followed by SharpLink, which holds astir 859,853 ETH, and Bit Digital with 150,244 ETH.

ETH treasury leaderboard. Source: CoinGecko

Despite caller volatility successful the Ether market, including waning request from US spot exchange-traded funds (ETFs), BitMine seat Tom Lee has maintained a bullish outlook. In remarks past month, Lee reiterated his presumption that Ether’s terms could scope $10,000 this year, arguing that the plus has been establishing a coagulated basal since 2021.

Despite Lee’s optimism, a broader consciousness of caution has taken clasp successful the marketplace pursuing the Oct. 10 crash, which wiped retired astir $19 cardinal successful crypto positions — the largest liquidation lawsuit connected record. Since then, Ether and the wider integer plus assemblage person struggled to regain momentum.

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