Founded by Su Zhu and Kyle Davies, Three Arrows Capital hit the headlines back in April after investing in BlockFi. Singapore‘s registered hedge fund has resurfaced once again after becoming the first qualified investor to hold more than 5 percent of the Grayscale Bitcoin Trust (GBTC) shares. The cryptocurrency hedge fund now owns 6.26 percent of GBTC shares..Su Zhulu, the co-founder, shared a bullish sentiment about the GBTC share market. The co-founder said :
“We are bullish on the GBTC demand,” Zhu told The Block. “Premium means inflows. There can be no premium without inflows.”
To date, the hedge fund has accumulated almost $259 million worth of GBTC shares. This is estimated at approximately 21 million GBTC shares or more than 20,230 bitcoins. Kyle Davis said that the Fund filed Schedule 13D form with the United States Securities and Exchange Commission ( SEC) today. The filing noted that the hedge fund currently holds 6.26% of GBTC shares, but SEC will publish the filing tomorrow.
Five days ago, Su Zhulu appeared on the Coinist Podcast, talking about Bitcoin’s “Bart Simpson” patterns. During the discussion, Zhulu dismissed the patterns as a result of bitcoin manipulation.
Not clear whether or not the amount includes bitcoin deposits from the hedge fund
Whether the Hedge fund deposited bitcoins in exchange for the shares is not yet clear, because the co-founders have not yet commented on the same. Notably, most of these investments occur after institutional investors arbitrate premium. Popularly known as in-kind inflows, these arbitrage premiums are executed over the net asset value.
Davies said they anticipate fresh inflows as Nasdaq hits new all-time highs. Additionally, the stakes for strong inflows remain high with bitcoin trading near $10,000.
Grayscale Bitcoin Trust Shares have high assets worth at least $3.65 under its belt. This figure represents the total amount of bitcoins that it holds in trust. The product of Grayscale witnessed in-kind inflows of 80 percent during the third quarter of 2019.