10x Research sees shorting Ether as a Bitcoin hedge

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.

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