- Abraxas Capital withdrew 138,511 ETH ($297M) amid a 20% Ethereum price surge.
- The timing suggests long-term holding strategy and institutional accumulation.
- Ethereum is at its most undervalued versus Bitcoin since 2019, analysts say.
Abraxas Capital pulled 138,511 ETH (worth $ 297 million) from centralized exchanges within the past two days, per the numbers from blockchain monitoring tool Lookonchain. The London-based asset management firm’s move is in line with a sharp rally in Ethereum’s price that jumped over 20% in the past 24 hours and briefly bumped up to $2,371 only to revert back to mid $2,295.
Abraxas Withdrawal Reflects Institutional Accumulation Trend
The scale and the timing of the transfer suggest a strategic move towards long-term asset custody and among other things less short term sell pressure. Analysts tend to consider such initiatives as bullish implying that prices will continue to appreciate and that there will be constriction of supply on the market.
Abraxas Capital’s massive withdrawal is part of a larger move towards accumulation. During the period of two days, the firm had transferred 61,401 ETH, but the cumulative on-chain activities indicate that the total withdrawals amounted to 138,511 ETH through multiple transactions indicating a conscious large scale repositioning.
The transactions accompanied important market dynamics. Data from Coinglass tells us that investments in Ethereum futures went up 20% while trading volumes spiked 184%. In addition, more than $265 million worth of short positions in ETH were liquidated which strengthened the upward momentum in ETH’s price.
Ethereum Most Undervalued Versus Bitcoin Since 2019
Although up 54% from a month ago, Ethereum is down 26% year-to-date. Analysts at CryptoQuant point out though that, the ETH/BTC Market Value to Realized Value ratio indicates that Ethereum is now its most undervalued performance compared to Bitcoin since 2019 which may signal an upward trend.
Abraxas Capital’s most recent move marks increased institutional involvement in Ethereum markets. Abraxas evolved from being a premier asset management firm to a global leader in the sector that began building a premier asset management firm in 2002 by Fabio Frontini, it then moved into digital assets in 2017 and is now a global leader in the industry.
