CRYPTO NEWS

Three arrows capital (3AC) liquidates its staked Ethereum holdings

  • Three arrows capital (3AC) liquidates a wallet with staked Ethereum (stETH).
  • Staked Ethereum trades below $1,000 as intense sell-offs continue.

Crypto hedge fund, three arrows capital, is close to being insolvent. Recently, it started selling its Ethereum and stETH holdings to pay off its outstanding loans and debts. This action by the crypto hedge fund will likely affect the crypto market negatively. There will likely be billion-dollar worth of liquidation. Thus, leading to another crypto market crash.

Three arrows capital dumps more stETH

Earlier on Thursday, 3AC dumped 5,500 stETH from one of its wallet addresses. There was still 14,118 stETH left in the wallet following that transaction. However, the crypto hedge fund swapped the stETH balance in this wallet later in the day.

The first transaction was worth 6.1M USDT, while the second was worth 13.5M USDT. Etherscan data shows that the fund sold the stETH balance in two transactions. In the first transaction, 3AC dumped 7,000 stETH, while it dumped 7,118 stETH in the second transaction.

Yesterday’s stETH dumps weren’t the first by 3AC. The fund has been selling huge amounts of its stETH. Various analytics show that 3AC’s stETH dump is now larger than the Celsius network.

Why 3AC is selling its crypto holdings

Over the last two months, 3AC has been selling off massive amounts of its stETH holdings from every account and seed round address. The crypto hedge fund has also been doing likewise to its Ethereum holdings. Also, multiple reports confirm that some 3AC-related firms are having operational issues.

Hence, it is likely that 3AC may sell off such companies soon. It is no wonder some firms, such as BlockFi, have started reducing their holdings in 3AC. The 3AC volatility has caused Finblox (one of the fund’s CeFi firms) to pause reward distributions.

Insolvency for 3AC could be a huge blow for the crypto industry. The fund manages more than $18b worth of digital assets. If the 3AC team can’t find other means to solve its financial issues, it would likely dump its other crypto holdings.

3AC has sizeable holdings of Bitcoin, Solana, Kusama, Avalanche, and Polkadot. Dune analytics data showed that 3AC’s portfolio of about $372.27M has dropped to about $139.12M in the last 24 hours.

The data also showed that 3AC’s USDC holdings are worth $166M, while its serum holdings are worth nearly $46M. 3AC had huge investments in the recently crashed terra network. Hence, it is facing huge capital loss following the crash of the LUNA and UST tokens.

The fund has yet to release any official statement regarding its insolvency issues. Instead, the fund’s founder, Su Zhu, only said, “we are discussing with relevant stakeholders. We remain committed to getting the company out of this issue.”

The price of Lido stETH drops again

With crypto companies swapping their stETH continuously, stETH’s price dropped again on Friday morning. Our data shows that lido staked ETH is down 1.47 percent in the last 24 hours and trades at $1,035.29. Hence, the stETH-eth ratio also reduced within the same period. It is now 0.93.

Der Beitrag Three arrows capital (3AC) liquidates its staked Ethereum holdings erschien zuerst auf Crypto News Flash.

Institutional Interest in Shorting Bitcoin Rises to Record Levels in US (Report)

Exposure to shorting Bitcoin’s price saw record inflows of $51 million last week as the asset crumbled below $20,000, a new report showed. Shorting Dominates in the US According to the latest CoinShares’ weekly ‘Digital Asset Fund Flows’ report, a total of $64 million in inflows in the digital asset investment products was observed between::Listen

Exposure to shorting Bitcoin’s price saw record inflows of $51 million last week as the asset crumbled below $20,000, a new report showed.

Shorting Dominates in the US

According to the latest CoinShares’ weekly ‘Digital Asset Fund Flows’ report, a total of $64 million in inflows in the digital asset investment products was observed between June 27 and July 1, and a major chunk of 80% went into shorting Bitcoin investment products.

The interest in shorting comes as Bitcoin posted the worst quarterly performance in a decade. A gloomy macro forecast, looming recession fears, and high-profile crypto firms struggling with the impact of the sell-off have all contributed to the bearish sentiment.

As a result, the US accounted for $46.2 million of inflows. The recently launched ProShares Short Bitcoin Strategy ETF, a fund that tracks bets against the price of Bitcoin alone, loaded up more than $43 million worth of inflows over the past week.

CoinShares noted that the accessibility of ProShares’ BITI offering shorting exposure via futures contracts for investors mulling a bet against Bitcoin had driven the current figures.

“This highlights investors are adding to long positions at current prices, with the inflows into short-Bitcoin possibly due to first-time accessibility in the US rather than renewed negative sentiment.”

Other than the US, inflows in long positions on Bitcoin were seen in Brazil, Canada, Germany, and Switzerland, which totaled $20 million.

The increase in short Bitcoin funds comes a week after CoinShares’ reported the largest ever digital asset products outflows that reached an astonishing record-high of $423 million. Bitcoin products saw net outflows worth $453 million during this time.

Diversification Has Begun

Investors are also beginning to diversify as inflows of several altcoins such as Solana, Polkadot, and Cardano’s totaled $1 million, $0.7 million, and $0.6 million, respectively. Ethereum also managed to finally break the 11 weeks of outflows by snapping up $5 million in inflows in the past week.

Furthermore, multi-asset investment products managed to float relatively smoothly despite the crypto carnage in the weeks prior. The report suggested that this cohort of products was least affected by the negative sentiments of the crypto winter and saw inflows worth $4.4 million while recording minor outflows only two weeks of this year.

Three arrows capital (3AC) liquidates its staked Ethereum holdings

Shopping cart
There are no products in the cart!
Continue shopping
0