- Hedge fund, Three Arrows Capital, purchases over $1 billion of stocks in Bitcoin
- Another fund launches a crypto fund
A hedge fund based in Singapore, Three Arrows Capital, has just completed the acquisition of Bitcoin stock worth well over $1 billion according to the Securities and Exchanges Commission (SEC).
The hedge fund bought over 35 million of stocks from Grayscale Bitcoin Trust at $34.10 per share. Each share is also redeemable with actual Bitcoin that equates to 0.001 BTC.
This transaction is the biggest one-off trade in the history of Bitcoin yet. Three Arrows is, however, yet to release a statement on if the purchase was made for a client or not.
It is a well known fact that most institutional investors have a preference for Grayscale Bitcoin Trust because it gives them an opportunity to invest in a, somewhat, regulated product. Not only that, the investors are saved from having to deal with issues of custody of such Bitcoin investments.
The Grayscale Trust had also seen transactions worth $1 billion bought through its platform in the last weeks of the previous year. However, the Trust has now seen a remarkable growth in this new year with investors investing the same amount in one transaction with the firm.
Another hedge fund launches a crypto fund
A hedge fund founded by a former communication director of the White House, SkyBridge Capital, has announced the launch of its Bitcoin-centric fund due to the increased level of interest in the crypto industry.
According to a report by Reuters, Anthony Scaramucci’s firm would begin its fund with $310 million in assets under management which is taken from its $3billion flagship fund.
The move of the hedge fund comes right when the public has shown more interest in cryptocurrencies and also an increased adoption rate among institutions.
In 2020, Bitcoin price more than doubled with the crypto asset bull run continuing into the new year.