Crypto fund moves $60m ETH to exchange amid market turmoil

Singapore-based hedge fund Three Arrow Capital has moved $60m worth of Ethereum to FTX

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Earlier this month, Ethereum dipped below the $1,800 mark for the second time amid a broader market exit from risky assets – Photo: Shutterstock
                                

Singapore-based crypto hedge fund Three Arrows Capital has reportedly sent $60m worth of Ethereum – or around 32,000 of the cryptocurrency – to the FTX crypto exchange yesterday, according to new data. 

The large transfer by the firm has raised concerns as to whether the fund, which was co-founded in 2012 and operates around risk-adjusted returns, might consider dumping more of the cryptocurrency in the future as the crypto market continues to witness a decline. 

According to the website OKlink.com, 16,000 ETH from Three Arrows Capital was transferred to FTX on 30 May at just after 09:00 BST (UTC +1) and then another 16,000 around an hour later. The hedge fund has transferred more 56,700 ETH to FTX in May alone.

Pressure on the crypto market

The wider market sell off points towards the current pressure on the crypto market, which has been steadily tracking the stock market, and is witnessing the effects of surging inflation as well as tighter monetary policies brought forward by the US Federal Reserve.

This has impacted the price of bitcoin (BTC) as well as the price and performance of Ethereum (ETH), which has been extremely volatile over the last few months, leaving investors and analysts doubtful about whether the second largest cryptocurrency by market cap will be able to bounce back in the short-term. 

Earlier this month, ETH dipped below the $1,800 mark for the second time amid a broader market exit from risky assets. The last time the cryptocurrency dipped below this threshold was in July 2021. As of 11:39 BST (UTC +1) today, the cryptocurrency was trading at around the $1,969, according to CoinMarketCap, down 1.3% on its closing price of $1,996 for yesterday.

While analysts predict further losses, some investors remain optimistic, citing benefits promised by the Merge – the long-awaited upgrade to the Ethereum blockchain to a proof-of-stake model. The upgrade is expected to significantly improve Ethereum’s transaction speed and help alleviate some of its environmental concerns regarding energy usage.

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