Abraxas Capital adds $32 million ETH spot hedge to $353 million Hyperliquid short

Abraxas Capital increased its spot Ethereum holdings by 13,000 ETH, valued at roughly $32.39 million, as a hedge against a large short position on the decentralized derivatives platform Hyperliquid.

Hedge details

The spot purchase represents just over 9% of the firm’s disclosed short exposure, which totals 141,180 ETH and is valued at about $353.27 million. After the hedge, the net short exposure remains approximately 128,180 ETH, assuming no other positions.

Historical context

Abraxas Capital has previously accumulated significant Ether holdings. In May 2025 the firm bought more than 211,000 ETH (over $477 million) after withdrawing roughly 138,511 ETH from centralized exchanges.

Market backdrop

Ethereum was trading near $2,500 at the time of the hedge, after a recovery from early‑September lows. Institutional demand for spot ETH has been strong, with U.S. spot Ethereum ETFs recording $225.8 million in net inflows on August 28.

Hyperliquid positioning

Large leveraged positions are common on Hyperliquid. Earlier in the year, whale accounts on the platform held combined long and short exposure exceeding $4 billion, with the short side slightly larger than the long side.

Implications

The hedge gives Abraxas exposure to ETH price movements in opposite directions: the short benefits from a price decline, while the spot position gains if ETH rises. Lookonchain described the transaction explicitly as a hedge rather than a reduction of the short.