Stock holdings increased by 85% in the past six months! Three Arrows Capital disclosed in public documents that its GBTC holdings are worth over $1.1 billion.

According to the latest SEC filing, Three Arrows Capital currently holds 38.88 million shares of GBTC, with a total value of approximately $1.2 billion. The holdings have increased by about 85% compared to last year.

Three Arrows Capital Increases GBTC Holdings by 85%

Singapore-based investment fund Three Arrows Capital disclosed its current position in the Grayscale Bitcoin Trust Fund (GBTC) in its latest filing with the U.S. Securities and Exchange Commission (SEC). The document reveals that the company now holds 38.88 million shares, approximately 6.1% of the total GBTC, which translates to around 36,969 bitcoins (currently valued over $1.2 billion).

Previously, the company had disclosed its accumulated GBTC holdings in June last year, where it held a total of 21.05 million shares (about 6.26%), equivalent to 20,000 bitcoins valued at around $192 million at that time. Over the course of six months, the company's GBTC holdings increased by approximately 85%. In response to this, Kyle Davies, co-founder of Three Arrows Capital, stated in an interview with The Block:

"We will continue to collaborate with the Grayscale team and look forward to making more investments in the crypto ecosystem."

GBTC is currently the largest Bitcoin security on the traditional financial market, with many prominent institutions as investors. As of last month, cryptocurrency lending company BlockFi holds about 5.07% of the total GBTC shares, ARK Invest with assets under management of $4.5 billion holds around 8 million GBTC shares, and asset management company Horizon Kinetic owns over 5.1 million shares. Even the "Guggenheim," second only to the Rothschild family, has plans to invest in the Bitcoin Trust Fund.

Why Buy GBTC?

Many wonder why Three Arrows Capital, a firm focused on the cryptocurrency market, would choose to purchase Bitcoin securities managed by Grayscale when they are capable of buying and managing actual bitcoins themselves. In fact, GBTC is a closed-end trust fund, and only large institutions with approved applications can directly purchase GBTC from Grayscale, while other investors can only buy these shares released by large institutions on the OTC market. However, the trading price of GBTC in the market has long maintained a premium compared to the actual bitcoin behind it.

For example, at the current market, the trading price per share of GBTC is $35, but if calculated based on the bitcoin behind each GBTC share (approximately 0.00094991 bitcoins), its value is only $30. In other words, the trading price is at a 16.6% premium compared to its actual value. According to Bloomberg'sdata, the average premium of GBTC over the past 52 days is 18.73%, which allows institutions like Three Arrows Capital to profit additionally when selling GBTC, besides the potential increase in bitcoin value.