Hedge fund buys $1 billion in Bitcoin

Institutional adoption continues in 2021

A Singapore-based hedge fund bought about $1.3 billion in bitcoins traded in shares, according to a paper submitted to the Securities and Exchanges Commission (SEC).

Three Arrows Capital purchased 38,888,888 shares issued BinBot by the Grayscale Bitcoin Trust. Each GBTC share currently costs $34.10 and can be redeemed for real Bitcoins at a rate of 0.001 BTC.

Making this the latest known case of institutional buying, it is still unclear whether Three Arrows purchased the currencies on demand from a specific client.

„We continue to enjoy working with the Grayscale team and hope to invest more in the cryptomime ecosystem,“ said Kyle Davies, co-founder of Three Arrows Capital.

The GBTC has been the preferred crypto fund of institutional investors because it is a regulated product. Grayscale generated $1 billion in purchases in the last two weeks of December as much as the entire third quarter of 2020.

Now, $1 billion is being purchased at one time. Three Arrows said this is the largest position in Grayscale’s Bitcoin Trust.