Author: 0xFacai

Abraxas Capital is a name that is both familiar and unfamiliar.

Familiar, because it frequently appears in reports on on-chain detection accounts. Once withdrawing tens of thousands of ETH, another time redeeming funds that directly drained liquidity, these actions are easily noticed.

Unfamiliar, because this institution hardly operates a public image. It does not have a verifiable X account, nor do any employees express opinions on Twitter. Most people recognize them through the labels attached to addresses on on-chain data platforms.

From TradFi to Crypto

Abraxas' starting point is in traditional finance. The two founders, Fabio Frontini and Luca Celati, both worked at Dresdner Kleinwort Wasserstein Bank; in 2002, they founded Abraxas Capital Management in London, initially engaging in global macro trading. In 2017, the company shifted its focus to digital assets.

Fabio Frontini

In 2018, Abraxas launched their first product, the Elysium Global Arbitrage Fund, conducting Bitcoin arbitrage between European, American, and Asian markets, and later gradually shifting to stablecoin arbitrage. In February 2019, Frontini met with Tether's then Chief Financial Officer Giancarlo Devasini, then visited Tether's banking partner Deltec Bank in the Bahamas. After that, Elysium started testing USDT liquidity from small transactions and gradually scaled up.

Not long after, Abraxas's Heka Funds became one of Tether's largest institutional clients. By 2021, over 1.5 billion USDT had been attributed to Heka's address path, accounting for about 1.5% of Tether's historical distribution at that time; among them, at least 1.05 billion USD entered Bitfinex, 144 million USD entered Binance, and 132 million USD entered Huobi. By 2023, Elysium traded over 1 billion USDT annually, with transaction fees close to zero.

The asset management scale of the Elysium series of funds exceeded 500 million USD in 2022, surpassed 1 billion USD in 2023, and is expected to exceed 4 billion USD in 2025. Among the current four fund products, Elysium Global Arbitrage Fund has a size of 1.5 billion USD, Alpha Bitcoin Fund has 1.9 billion USD, Alpha Ethereum Fund has 7 million USD, and Alpha Gold Fund has 423 million USD.

The official introduction of Elysium Global Arbitrage Fund

The post-fee performance reference for the USD shares in 2025 was also provided. Elysium Global Arbitrage Fund returned 12.41%; Alpha Bitcoin Fund returned -2.55%, during which BTC fell 8.28%; Alpha Ethereum Fund returned -5.21%, during which ETH fell 13.95%; the Alpha Gold Fund, established in October 2025, returned 14.63% in the last three months of that year, while gold rose 11.50% during the same period.

As of July 23, 2026, Abraxas Capital's 43 identifiable addresses held approximately 1.142 billion USD in assets. Among them, Bitcoin accounted for 548.6 million USD, Ethereum 440.5 million USD, HyperCore approximately 69.34 million USD; there were also 26 Hyperliquid contract positions worth about 70.37 million USD and approximately 12.82 million USD in Hyperliquid staked assets.

This group of 43 addresses expanded Abraxas's on-chain profile far beyond a single trading account. The Hyperliquid address most frequently mentioned in on-chain detection reports is just a part of the institution's public footprint.

Tether's Good Friend

The arbitration materials released in July 2026 between Circle and Heka Funds first laid Abraxas's capital relationship with Tether on the table. On April 28, 2023, Tether's cumulative position in Elysium was about 500.2 million USD; a month later, it increased to about 504.6 million USD. By the time of arbitration, Tether's investment reached 800 million USD, accounting for about 75% of Elysium's total assets. Tether also waived Heka's USDT minting fees. Founder Frontini testified that Tether injected 500 million USD into Elysium again in February 2024.

When USDC unpegged in March 2023, Abraxas Capital bought discounted USDC from the secondary market and redeemed it from Circle at 1 USD, redeeming over 587 million USD in two weeks. Circle later suspected that these transactions were helping its competitor Tether expand market share and banned Abraxas Capital's account in December of the same year. Abraxas Capital denied market manipulation, and the arbitrator confirmed that Circle had the contractual right to restrict the account, but did not rule that Abraxas Capital manipulated the market.

The flow of on-chain funds extended this relationship beyond arbitration. In August 2025, 250 million USD in USDT flowed from Tether to Abraxas-associated accounts, part of which was used to reduce Aave debt, and about 79 million USD temporarily returned to Aave. From April 9 to 24, 2026, according to the associated address path statistics, approximately 4.3 billion USD in newly minted USDT was attributed back to Abraxas's funding network.

Capital, fees, and on-chain channels intertwining show that Abraxas's relationship with Tether has far exceeded that of a stablecoin issuer and a regular client. Public documents do not clarify whether Tether holds equity in the Abraxas management company, but its weight in Elysium assets has reached three-quarters, making Abraxas an important institutional outlet for Tether's funds to enter exchanges, lending protocols, and arbitrage markets.

Profitable Hedge Wallet

We analyzed Abraxas Capital's most well-known address on Hyperliquid. Its 54 calculable trades collectively earned approximately 78.11 million USD, with 35 wins and 19 losses, and a win rate of 64.81%.

The median position size for this account was only about 520,000 USD, yet the average reached approximately 8.45 million USD. The average is 16 times the median, clearly dominated by a few large positions. 31 short positions contributed approximately 77.74 million USD in profits.

These 54 records are just a part of the institutional hedging system, but they are enough to demonstrate the capacity of institutional-level accounts in the public order book.

The largest loss and the largest profit from this account both came from XPL.

On September 23, 2025, the account established a short position of approximately 19.78 million USD in XPL at an average price of 0.7504 USD. At that time, XPL had not officially issued. Two days later, Plasma launched the mainnet, and the fully diluted valuation of XPL briefly exceeded 8 billion USD. The account closed the position 4 days later at an average price of 1.2255 USD, resulting in a loss of approximately 12.53 million USD.

After the first trade ended, the account almost immediately re-shorted at an average price of 1.0491 USD. The new position reached approximately 151.7 million USD, nearly eight times that of the previous trade. After peaking on September 28, XPL fell back, and the account eventually exited on October 17 at an average price of 0.692 USD, achieving about 52.21 million USD in profits.

Currently, this address holds approximately 97.82 million USD in ETH short positions, 51 million USD in HYPE short positions, 60 million USD in BTC short positions, 15.41 million USD in SOL short positions, and 2.35 million USD in FARTCOIN short positions. The FARTCOIN position accounts for about 11.07% of the entire market’s open contracts, SOL accounts for 4.33%, ETH accounts for 4.16%, HYPE accounts for 3.89%, and BTC accounts for 2.13%.

An address simultaneously occupying several percentage points of multiple perpetual markets, the opening and closing of positions themselves have become variables that the market must digest. But pulling the lens back, this is still just one of the 43 labeled addresses.

On-chain Giants

In May 2025, Abraxas completed a large-scale ETH dispatch. As of May 20, the two related addresses that had been identified held assets exceeding 1.15 billion USD; between May 13 and 20, these two addresses withdrew nearly 270,000 ETH from exchanges, valued at over 690 million USD.

Among them, more than 174,000 ETH subsequently entered Aave, Ether.fi, and Compound, valued at approximately 440 million USD at that time, with the Aave V3 position nearing 480 million USD. In just one week, the amount of ETH dispatched far exceeded the total nominal positions of the previously mentioned Hyperliquid addresses.

From April 25, 2019, to July 22, 2026, Abraxas cumulatively deposited approximately 121.7 billion USD into centralized trading platforms and withdrew about 105.54 billion USD from the platforms, with a total flow exceeding 227.2 billion USD.

Over 227.2 billion USD in exchange inflows and outflows thoroughly exposed Abraxas's capital turnover capability.

Even when broken down to a single address, the fund flow remains impressive. In 2024, the address 0xed0c…4312 held over 216 million USD in assets and generated over 6 billion USD in transaction volume through protocols such as Aave, 1inch, Spark, and Compound, transferring over 800 million USD to other Abraxas addresses within five months.

In the nearly 90 days of approximately 3.75 billion USD of ETH-related fund flows from this address, about 2.06 billion USD flowed through Aave, Compound, and Spark. It has cumulatively deposited about 4.61 billion USD in ETH and BTC derivative assets into Aave V3 and lent around 3.01 billion USD in USDT. Billions of dollars repeatedly cycle between lending protocols and exchanges, constituting the daily routine for this address.

The Most Expensive Advertisement

In September 2024, Abraxas redeemed 100 million USD in USDe within about 20 minutes, temporarily exhausting the withdrawal buffer funds of Ethena's protocol. 25 minutes later, the buffer funds were restored to 30 million USD. The capital dispatch of an institution inadvertently became a stress test for leading DeFi protocols.

The same scale can be seen in the lending market. In July 2025, Abraxas once controlled about 36% of USDe deposits on Aave. One Abraxas address circulated nearly 1 billion USD in sUSDe; another address held approximately 547 million USD in collateral on SparkLend, while another had deposited about 66.68 million sUSDe in one go to Aave.

Chaos Labs reminded in the AAVE governance forum that the market for Aave's USDe is mainly controlled by giants like Abraxas Capital

The dispatch of ETH continued into 2026. From July 13 to 17, Abraxas withdrew a total of 45,996 ETH from Binance, Bybit, and Bitfinex, valued at about 8.439 million USD at that time. During the same period, about 82,300 ETH were deposited back into Spark and Aave, with approximately 54,500 ETH entering Spark and 27,845 ETH going into Aave.

Meanwhile, the Hyperliquid address analyzed in this article continued to expand its ETH short positions. On July 24, short positions reached about 50,245 ETH, with a nominal value of about 97.82 million USD, and unrealized losses of about 1.14 million USD. Tens of thousands of ETH in spot were sent into the lending protocol, while nearly 100 million USD in short positions hedged price fluctuations on Hyperliquid. Abraxas possesses the ability to mobilize tens of thousands of ETH in spot and establish public hedging positions worth nearly 100 million USD simultaneously.

Beyond ETH, Abraxas's holdings in tokenized gold are also dominant. Abraxas holds approximately 86,947 XAUT across wallets, accounting for 12.3% of the supply, valued at approximately 400 million USD. At one point in June 2025, one Abraxas address contributed 99.26% of the liquidity to Uniswap V3 XAUT/WBTC liquidity pool.

The mystery surrounding Abraxas has not dissipated because of this. We still do not know why they established each position, nor can we deduce the entire fund's strategy and performance from on-chain labels.

But evidently, they do not need to operate social media. The scale of fund movement itself is the most expensive advertisement.

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