Crypto Hedge Fund Three Arrows Takes GBTC Carry Trade Ahead of Rumored Crash – Bitcoin News

Last week, cryptocurrency hedge fund Three Arrows Capital (3AC) received a lot of attention due to the company’s alleged liquidation of large leveraged positions and speculation of bankruptcy. According to a recent report, 3AC’s over-the-counter (OTC) business TPS Capital came up with a GBTC arbitrage opportunity ahead of the firm’s alleged failure to meet margin calls.

3AC co-founder says ‘Terra-Luna situation caught us off guard’ – FTX CEO Sam Bankman-Fried insists 3AC can’t have on-chain protocol issues

Before June 14, which is the last day of Suju tweetCo-founder Three Arrows Capital Limited (3AC) is very active on Twitter. Zhu and 3AC co-founder Kyle Davis have been completely inactive on social media since then, but the silence hasn’t stopped people from investigating the company.This is because various Report Indicates that the 3AC position is liquidate There’s some left Report It is speculated that the fallout from Terra LUNA and UST has cost the company a “huge loss”. The same account suggested that it could lead 3AC to “use more leverage to win it back. Also known as a ‘retaliation trade,'” the report added.

On June 17, it was reported that Reuters and Wall Street Journal (WSJ) 3AC is “exploring options, including an asset sale and a bailout of another company.” Davies, who was interviewed by The Wall Street Journal, told the outlet, “The Terra-Luna situation caught us by surprise.” In addition, Michael Moro, CEO of Genesis Trading, explain On Twitter, the firm “mitigated our losses” against large counterparties that did not meet margin calls. He also added that Genesis Trading’s client funds were not affected.

And then there’s Sam Bankman-Fried, CEO of FTX spoke In a June 19 message about 3AC, he emphasized that issues like 3AC’s financial collapse “couldn’t have happened in a transparent on-chain protocol.” Bankman-Fried’s statement stems from question That asks how the crypto industry ensures that the 3AC moment never happens again.

3AC’s over-the-counter trading desk TPS Capital conducted GBTC-related trades ahead of alleged crash, report says

In addition, The Block reporter Frank Chaparro published a Report That is to say “In the days before Three Arrows Capital exploded, it was pitching investors a new carry trade.” Chaparro detailed that The Block reviewed investment documents allegedly pitched to investors by TPS Capital and the involved Arbitrage Opportunities GBTCGrayscale exchange-traded products and Bitcoin (BTC)“They’re pitching to so many people,” a source told Chaparro.

“Three Arrows’ pitch is to structure a deal for counterparties that will provide the benefits of a discounted crash as the SEC decision deadline looms,” Chaparro wrote. “GBTC is currently trading at 33.75% below the price of Bitcoin it is tracking.” Similar to the Celsius situation, the public has yet to actually hear from anyone associated with 3AC.Although, the Celsius Network team did release a blog post Point out that “this process will take time”.

tags in this story

3AC, arbitrage, bitcoin, Celsius Network, Celsius situation, CEO of Genesis Trading, Frank Chaparro, CEO of FTX, GBTC, GBTC arbitrage, Genesis Trading, Kyle Davis, Michael Morrow, Reuters reports, Sam Bankman-Fried, Su Zhu, Terra-Luna situation, block reporter, Three Arrows Capital, The Wall Street Journal reports

What do you think of the situation with 3AC and the company’s alleged GBTC arbitrage opportunity? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News for Bitcoin.com News and a fintech reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 5,000 articles for Bitcoin.com News on the disruptive protocols emerging today.




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