Ethereum

Notable

Spot

Gains

<p>In a recent <a href="https://twitter.com/Prithvir12/status/1712001477093605801" target="_blank" rel="noopener noreferrer nofollow">thread</a> shared by Prithvir, CEO of wallet aggregator Loch Chain, a meticulous analysis was conducted on Abraxas Capital Management, a digital asset hedge fund based in London, revealing some intriguing insights into their trading strategies, performance, and current holdings in the cryptocurrency space.</p>
<p>Abraxas, not just a mere player but a titan, has realized a staggering $5 billion in profits since its inception just three years ago. The hedge fund has not only demonstrated a robust trading strategy but also showcased the potential and efficacy of decentralized finance (DeFi) in generating substantial gains.</p>
<h2 class="wp-block-heading" id="strong-trading-strategy-a-blend-of-market-neutral-and-defi-approaches-strong"><strong>Trading Strategy: A Blend of Market-Neutral and DeFi Approaches</strong></h2>
<ul>
 <li><strong>Market-Neutral Strategies:</strong> Abraxas has adeptly employed market-neutral strategies, providing directional exposure while seeking to outperform Ethereum (ETH).</li>
 <li><strong>DeFi Protocols:</strong> A significant portion of gains were derived from credit and debt strategies involving prominent DeFi protocols such as @LidoFinance, @AaveAave, @StargateFinance, and @compoundfinance.</li>
 <li><strong>ETH Conversions:</strong> The fund converted $5.32 billion of ETH into a whopping $8.84 billion.</li>
 <li><strong>Stablecoins and Derivatives:</strong> Trading predominantly revolved around stablecoins and ETH/BTC derivatives, steering clear of altcoins.</li>
 <li><strong>Trade Volume:</strong> Over the past two years, Abraxas executed more than 10,000 trades, averaging 13 trades per day.</li>
</ul>
<h2 class="wp-block-heading" id="strong-current-holdings-a-closer-look-strong"><strong>Current Holdings: A Closer Look</strong></h2>
<ol>
 <li><strong>Spot Positions ($36m):</strong>
  <ul>
   <li>wBTC: Cost basis of $36.1m, with a current value of $36.3m, marking a 0.71% gain.</li>
  </ul></li>
 <li><strong>DeFi Balance Sheet ($86.38m):</strong>
  <ul>
   <li>Credit Positions: $104m</li>
   <li>Debt Positions: $18.57m</li>
  </ul></li>
</ol>
<h2 class="wp-block-heading" id="strong-historic-performance-striking-numbers-and-efficiency-strong"><strong>Historic Performance: Striking Numbers and Efficiency</strong></h2>
<ul>
 <li><strong>Peak Spot Positions:</strong> In 2021, spot positions reached their zenith at $12 billion.</li>
 <li><strong>Transaction Volume:</strong> Abraxas transacted over $100 billion of volume on Ethereum, spending a mere $100,000 in gas fees, which is less than 0.00015%. This underscores the unparalleled efficiency of on-chain settlement, a feat unattainable via traditional financial channels.</li>
 <li><strong>Primary Counterparties:</strong> Notable counterparties include @circle ($4.44b), @binance ($3.4b), @bitfinex ($2.15b), @LidoFinance ($1.9b), @compound ($1.67b), @coinbase ($467m), and @optimism gateway ($64m).</li>
</ul>
<h2 class="wp-block-heading" id="strong-key-takeaways-gleaning-insights-from-abraxas-strategy-strong"><strong>Key Takeaways: Gleaning Insights from Abraxas’ Strategy</strong></h2>
<ul>
 <li><strong>Substantial Gains with ETH Derivatives:</strong> Large asset managers, like Abraxas, can realize substantial gains trading derivatives of ETH on-chain.</li>
 <li><strong>Opportunities in DeFi:</strong> A myriad of opportunities exists in decentralized finance, spanning across lending, staking, and liquidity pools.</li>
 <li><strong>Altcoins Not a Necessity:</strong> One doesn’t need to delve into the long tail of altcoins to achieve outsized returns.</li>
 <li><strong>Minimized Transaction Fees:</strong> Handling transactions worth hundreds of billions of dollars on-chain while incurring de minimus transaction fees is not only feasible but has been effectively demonstrated.</li>
</ul>
<p>This analysis by Loch Chain provides a fascinating glimpse into the strategies and performance of Abraxas Capital Management, highlighting the potent possibilities within the crypto and DeFi spaces when navigated with astute strategies and a keen understanding of the market dynamics.</p>
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<p>The post <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com/abraxas-capital-management-realizes-5000000000-in-profits-in-3-years-analyst-breaks-down-their-strategy/">Abraxas Capital Management Realizes $5,000,000,000 in Profits in 3 Years, Analyst Breaks Down Their Strategy</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com">CaptainAltcoin</a>.</p>

Abraxas Capital Management Realizes $5,000,000,000 in Profits in 3 Years, Analyst Breaks Down Their Strategy

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