Three Arrows Capital (3AC), a Singapore-based crypto hedge fund, has just purchased 7,500 Ethereum tokens for a total of $22.43 million. According to reports, the firm that has accumulated close to half a billion dollars worth of Ether (ETH) received its 7,500 coins in four transactions with its Ethereum address showing an outflow of ETH from crypto exchanges FTX and Deribit.
The move signals a continued bullish sentiment on the part of institutional investors towards Ethereum and cryptocurrency as a whole. With concerns around security and volatility largely dissipating, it is clear that savvy investors are starting to see cryptocurrencies as a new asset class with great potential for growth.
Three Arrows Capital is one of the leading investors in the Ethereum ecosystem. In fact, the hedge fund manager continues to be one of the most influential members of the community by supporting the Ethereum platform through both financial and informational resources. This despite 3AC’s CEO Zhu Su publicly slamming the cryptocurrency on Twitter last November stating that “Ethereum ha[d] abandoned its users despite supporting them in the past.”
Yes I have abandoned Ethereum despite supporting it in the past.
Yes Ethereum has abandoned its users despite supporting them in the past.
The idea of sitting around jerking off watching the burn and concocting purity tests, while zero newcomers can afford the chain, is gross.
— Zhu Su 🔺🌕 (@zhusu) November 21, 2021
Following Zhu’s statements, 3AC proceeded to sending a sizeable chunk of its ETH to exchanges. A couple of weeks later however, Su made a U-turn on his original argument, saying that he loved “Ethereum and what it stands for.”
In the days that followed, 3AC gave up on its ETH dumping plan after more than 91,000 ETH, or about $400 million were transferred within 48 hours to a wallet that Etherscan associated with the Singapore-based firm.
Almost all the funds entering 3AC’s wallet were transferred from Binance, FTX and Coinbase.
Look I couldn't let you guys jerk off watching the burn without me
Eth L1 still unusable for newcomers, show it to your grandma if you don't believe me
I'll still bid it hard on any panic dump like this weekend obv
100k eth is dust fwiw, more coming
— Zhu Su 🔺🌕 (@zhusu) December 7, 2021
After confirming the transactions, Su said that despite Ethereum’s L1 still being “unusable for newcomers”, and to back his claim up he sarcastically suggested: “show it to your grandma if you don’t believe me,” he stated he would still “bid hard on any [Ether] panic dump.”
Since then, 3AC has been buying Ether and appears to be increasing its holdings with minimal selling and nothing close to what was witnessed in November. This is significant news for Ethereum holders, as it suggests the firm’s bullishness on the network’s future.
Price Action
Ether was trading up by 3.46% retesting the $3,000 psychological level at the time of publication Wednesday. The smart contract network is up 16% month-over-month and 78% year-over-year. In the last seven days, ETH has rallied almost 19%. Bitcoin’s price meanwhile, has jumped from $41,000 to 42,800, denoting a 4.4% surge.
Reference: ZyCrypto
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