- 3AC acquired Ethereum (ETH) when it was trading near $2800.
- ETH rallies by 16%, outperforms BTC.
LAGOS (CoinChapter.com) — Three Arrows Capital, a leading cryptocurrency hedge fund has bought about 7500 Ethereum (ETH) worth around $22.43 million.
The firm took advantage of the recent crypto market crash to load up on Ethereum at a low price. A report from Wu Blockchain disclosed that Three Arrows Capital had been ramping up its crypto buying activities. However, an in-depth investigation revealed that the crypto platform was intentionally pouring millions of dollars into ETH.
Interestingly, Three Arrows Capital acquired Ether when it was trading near $2800, before a nearly 5% rise in its price. However, the crypto market has since recorded significant growth, including Ethereum, which is currently trading above $3000.
Data from Etherscan indicated that three transactions linked to the wallet address of Three Arrows Capital took place. Two exchange outflow transactions from FTX, with values of 3500 and 2000 ETH, and one outflow transaction with a value of 2000 ETH from Deribit.
These transactions indicated that hours before the hedge fund manager sent more than $100 million worth of ETH to an address. In fact, after receiving funds from Three Arrow, this address transferred the money to staking pools associated with Lido and Curve.
Three Arrows Capital actions are reducing the supply of Ether in circulation. Also, the wallet address of the hedge fund manager reveals massive ETH staking this week.
Three Arrows Capital CEO Implies ‘Preordained’ Purchase
Zhu Su, co-founder of Three Arrows Capital, through his official Twitter handle indicated that the recent purchase, was planned. He said:
“The answer to “why pump” is always “preordained,” nothing more nothing less.”
Recall that Zhu Su has previously implied that he no longer supports Ethereum. The Three Arrows Capital CEO had reportedly said that he was leaving the Ethereum project behind.
Zhu had fingered the high cost of transactions on Ethereum as the top reason for abandoning the project. He described the situation as “gross” owing to the fact that newcomers were unable to enter the space due to high fees.
Ether Outperforms Bitcoin As Upgrade Draw Nearer
Meanwhile, in the last seven days, the crypto market has recorded a rise since its recent plummet. BTC as a result of the surge gained 10% and currently trades above $42,000 while ETH has outperformed BTC.
Ether’s impressive performance has been tied to the upcoming update of the blockchain ecosystem. It is worth noting that the update aims to reduce the carbon footprint of the world’s most-used blockchain.
The update which is called the Merge will change how transactions on Ethereum are ordered. It will help the network consume less electricity and run more efficiently.
In addition to making Ethereum more environmentally friendly, the upgrade could also reduce the supply of Ether in circulation. According to Ethereum developers, the software update is expected to happen within months.
Ether, the native cryptocurrency of the Ethereum blockchain, rallied more than 16% in the past seven days, while Bitcoin rose by 8.4%. So far this year, Ether is down about 17% and Bitcoin has fallen roughly 7%.
