Singapore investment firm Three Arrows Capital is probably one of the institutional whales responsible for the massive surge in the price of Bitcoin (BTC) since late 2020 judging by the company’s ownership of Grayscale Bitcoin Trust (GBTC) shares. Bitcoin’s appeal among institutional investors continues to grow with many companies adopting the largest crypto by market capitalization as a suitable treasury reserve asset.
Grayscale Holds Over 6 Percent of GBTC Shares
According to a document filed with the U.S. Securities and Exchange Commission (SEC), Three Arrows owns 39,969 BTC worth about $1.24 billion based on the prevailing GBTC premium. This Bitcoin ownership figure amounts to about 6.1% of the total GBTC shares.
As of press time, the total GBTC holdings stand at over 607,000 BTC placing Three Arrows as the largest holder in the Grayscale BTC Trust portfolio. For Three Arrows Capital co-founder Kyle Davies, the company plans to continue working with Grayscale to acquire more investment positions in Bitcoin and cryptocurrencies.
Indeed, Grayscale which is the largest crypto asset fund manager has been at the heart of massive Bitcoin accumulation throughout the latter part of 2020. The company has also secured SEC reporting status for both its Bitcoin and Ether (ETH) Trusts.
Apart from Grayscale, another fund manager, Bitwise, has also seen its holdings grow over the course of the last quarter of 2020. In a press release issued on Monday (Jan 4. 2021), Bitwise revealed that its assets under management (AUM) surpassed $500 million.
This landmark is despite the firm liquidating its XRP position back in December. At the time, the company explained its decision to dispose of its XRP holdings as being the result of the SEC’s enforcement action against Ripple.
Bitcoin Bull Case Continues into 2021
Meanwhile, Bitcoin’s bullish price performance has continued into 2021 with the BTC price topping out at about $34,000. However, Bitcoin has seen a slight retrace, filling CME futures gaps at the $27,000 and $29,000 price bands.
This over 10% retrace contributed to about a $72 billion wipeout from the total crypto market capitalization. Before the decline, the cryptocurrency market size seemed set to cross the $1 trillion milestone.
As of press time, ETH and Cardano (ADA) are the only top-10 “coins” still showing a positive 24-hour price performance. However, Ethereum has also seen its own retrace down for a three year high above $1,100.