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Institution Increases Leverage to Accumulate Ether
Ether’s Performance Turns Strong
Institutional Interest Shifts to Altcoins
According to information shared by on-chain data analyst Lookonchain, London-based asset management firm Abraxas Capital purchased 211,030 Ether within a week, with a total value of up to $477.6 million. This large-scale accumulation reflects a renewed confidence from institutional funds in Ether.
On-chain data shows that Abraxas Capital conducted this purchase through the decentralized lending protocol Aave, using Ether as collateral to borrow $240 million USDT, thereby obtaining funds for the acquisition through leverage.
It is worth noting that Abraxas Capital continues to buy ETH; at the time of writing, the institution had additionally acquired approximately 6,500 ETH.
Despite Ether’s performance being significantly behind Bitcoin (BTC) since the beginning of the year, last week, after the completion of the major upgrade “Pectra,” Ether experienced a strong rebound, rising over 20% within a week and breaking through the $2,200 mark.
Presto Research analyst Min Jung pointed out, “ETH has finally started to catch up with BTC. The ETH/BTC exchange rate has fallen nearly 40% over the past year and is currently around 0.02, making the current entry price attractive.”
LVRG Research’s research director Nick Ruck also added, “The Pectra upgrade has released positive market sentiment, and with the macroeconomic environment warming up, many traders are beginning to view crypto assets as a new hedge.” Nick Ruck stated that as altcoins generally shake off the downturn from earlier this year, market risk appetite has increased, bringing new buying momentum to mainstream assets like ETH.
It is noteworthy that in addition to institutions already focused on the cryptocurrency market, an increasing number of listed companies are starting to view altcoins as investment targets. According to an official announcement, DeFi Development Corp (formerly Janover), a U.S. publicly traded company focusing on building SOL strategic reserves, announced on May 12 that it purchased 172,670 SOL at an average price of $136.81, with a total value of approximately $23.6 million. Following this transaction, the company’s total SOL holdings increased to 595,988 SOL.
This marks the largest acquisition of SOL tokens by DeFi Development Corp to date and is the tenth purchase under its digital asset treasury strategy. The newly acquired SOL will be held long-term and staked to multiple validation nodes, including the company’s own SOL validation node to generate benefits.
