10x research: shorting ether could be a smart hedge as Bitcoin dominates institutional flows
Ethereum could face more pressure as institutional money continues to favor Bitcoin, according to a new report from 10x Research. The firm said that with most of the capital in the crypto space flowing into Bitcoin, Ether might serve as a useful hedge short for investors looking to balance their exposure.
The report argues that Ethereum’s ecosystem is showing structural cracks as companies focused on the asset run low on cash reserves. Meanwhile, Bitcoin has cemented its position as the preferred choice for institutional treasuries.
“Digital asset treasury” strategies — where institutions accumulated ETH and later sold it to retail investors — are starting to break down, 10x said. The firm pointed to a lack of transparency in private investment in public equity (PIPE) disclosures and a slowdown in capital inflows as warning signs.
One example is BitMine, a treasury company that reportedly allowed institutions to buy ETH at cost and resell it to retail buyers at a markup, creating a feedback loop that once helped fuel price gains. That cycle, however, appears to be losing steam.
Technically, 10x analysts said Ether could see a sharp pullback if prices fall below the $3,000 support level, potentially sliding toward $2,700. “Weekly stochastics are flashing a topping pattern, and the multi-year wedge has revealed a false breakout, echoing the false breakdown seen in March 2025,” the report noted.
Ether treasuries stay bullish, even as caution builds
Despite the bearish signals, Ethereum-focused treasury firms are still holding large positions. Industry data shows about 15 such companies collectively own around 4.7 million ETH. BitMine accounts for roughly 3.3 million ETH, followed by SharpLink with 860,000 ETH and Bit Digital with 150,000 ETH.
BitMine’s chairman, Tom Lee, remains upbeat. In comments last month, he reiterated his prediction that Ether could reach $10,000 this year, arguing that the asset has been building a strong base since 2021.
Still, market sentiment has cooled following the 10th of October crash that wiped out roughly $19 billion in crypto positions — the largest single-day liquidation event on record. Since then, Ether and the broader crypto market have struggled to regain momentum.
