As part of 3AC's bankruptcy proceedings, over 300 NFTs from Starry Night Capital were moved this week.
Hedge Fund News
A hedge fund is an investment pool or fund that is managed by financial professionals, known as fund managers, and trades in a wide range of asset classes in order to generate market-beating returns. Often employing a combination of different trading instruments within an asset class, hedge funds indulge in risky trading and investment strategies, including shorting a market instrument in order to generate a profit.
While not many hedge fund managers adhere to the principles of hedging when investing in financial markets, the term “hedge fund” is used to describe any investment fund that uses credit or borrowed capital to speculate across various asset classes. Hedge funds that specialize in investing in cryptocurrencies and other decentralized digital assets are known as cryptocurrency hedge funds. Experts or insider investors actively manage funds for a fee to analyze and choose investment opportunities.
Falling out of the purview of central agencies that monitor financial markets in their respective jurisdictions, hedge funds are usually incorporated overseas as a limited liability partnership (LLP) and rely on the reputation of their fund managers to draw investors. Despite the potential to generate greater returns, investments in hedge funds do not enjoy the same liquidity as those made in mutual funds, with higher management fees further denting their overall appeal to the average investor.
According to blockchain provider Nansen, hundreds of NFTs have been moved from the 3AC-linked fund to a Gnosis Safe address.2056
FTX US was the successful bidder in the Voyager auction. But one industry insider tells Cointelegraph that the deal didn’t have depositors’ best interests in mind.4358
“We want to provide liquidity for people that are kind of giving up because we’re still very bullish for the next 10 or 20 years,” said CEO Dan Morehead.1571
As long as the regulation gives an institutional investor a very clear path to crypto, they’ll jump into the space, hedge fund co-founder CK Zheng told Cointelegraph.3858
Decentralized finance still has a way to go before it can attract institutional capital. Meanwhile, Fireblocks has become a 9-figure revenue-generating company.2056
Portofino’s backers believe that access to high-frequency trading, or HFT, could bring more hedge funds and institutional investors into crypto.2790
The public was invited to comment on whether the regulators should use the term “crypto asset” instead of “digital asset” in proposed changes to Form PF.3023
A non-difficulty bomb ETHW chain could grab 2%–10% of Ethereum's market capitalization, crypto hedge fund manager says.17627
The hedge fund manager was part of a $50-million funding round for NFT company Recur, while Point72 Ventures backed a $21-million round for crypto analytics firm Messari.1973
A crypto hedge fund co-founders acknowledge their mistakes, driven by bull market overconfidence.1766
3AC downfall has led to a multibillion dollar cascade that has claimed the likes of Celsius, Voyager and many other crypto lending firms with exposure to the hedge fund.12774
Once the most revered hedge fund in crypto, Three Arrows Capital has gone bust. As it turns out, its holdings of Deribit shares may be much smaller than reported.6051
Su Zhu revealed the 3AC team had close ties to Terra co-founder Do Kwon, which made them overlook several red flags with the project that eventually led to a multi-million dollar loss for the hedge fund.8519
The creditors of Three Arrows Capital may be left holding the bag, according to a source who claims the hedge fund's exposure to Deribit is only worth $25 million.2728