Protect Bitcoin Exposure with Ether Shorts: Research Firm
A research firm advises clients to hedge bullish Bitcoin positions by shorting Ether due to relative ETH weakness.Summary
10x Research, led by Markus Thielen, recommended that clients hedge their long Bitcoin (BTC) positions by taking short positions in Ether (ETH), diverging from optimistic year-end ETH rally forecasts. This recommendation is based on several factors indicating ETH's relative weakness. Specifically, the outlook for the ETH Digital Asset Treasury (DAT) appears weak because Bitmine Immersion Technologies, a major ETH buyer, has slowed its purchases due to declining retail demand and constrained capital-raising capacity. Furthermore, options markets show an anti-ether bias, with traders buying more ETH put options, contrasting with Bitcoin's surging call option open interest. Google search data also suggests a shrinking pool of incremental Ether buyers. Thielen concluded that a long-BTC/short-ETH strategy is attractive and should protect against potential downside if Bitcoin breaks its current trading pattern, even if BTC moves lower.
(Source：CoinDesk)