10x Research says Ethereum faces structural risks as Bitcoin draws most institutional capital, making ETH a potential hedge short amid market caution. As Bitcoin continues to attract institutional treasury capital, Ethereum-focused companies are beginning to run out of dry powder, making the asset a potential shorting opportunity for investors looking to hedge their exposure to the digital asset sector. That was one of the key takeaways from a recent 10x Research report, which argued that shorting Ether (ETH) could be a smart hedge against Bitcoin (BTC). According to the report, Bitcoin remains the primary focus for institutional investment, while Ether exhibits structural weaknesses. The analysts said that “digital asset treasury” narratives around Ethereum have led institutions to accumulate ETH and later distribute it to retail investors — a pattern now breaking down amid a lack of transparency in private investment in public equity (PIPE) disclosures and uncertain capital flows. Read more
Bitcoin treasury firms saw NAV premiums collapse as retail lost billions, but the reset created entry points for a new era of skilled asset managers, say researchers. Net Asset Values (NAVs) in digital asset treasuries (DATs) have collapsed, but this is not as bad as it sounds and can be viewed as an opportunity for savvy investors, according to 10x Research. “The age of financial magic is ending for Bitcoin treasury companies,” stated 10x Research analysts in a report shared with Cointelegraph on Friday. “They conjured billions in paper wealth by issuing shares far above their real Bitcoin value — until the illusion vanished,” they continued. Read more