Three Arrows Capital, a cryptocurrency hedge fund based in Singapore, has withdrawn nearly 71,000 ETH from crypto exchanges Bitfinex, FTX, and Binance in the last 24 hours. From which, the hedge fund has transferred nearly 52,420 ETH into the Curve’s ETH/stETH liquidity pool for Ethereum staking.
Three Arrows Capital Stakes Ethereum (ETH)
According to data from Etherscan, Three Arrows Capital’s wallet address shows an inflow of nearly 71,000 ETH from three crypto exchanges. The hedge fund has withdrawn 50,000 Ether from FTX, about 10,000 Ether from Bitfinex, and about 1300 Ether from Binance.
According to a tweet by Colin Wu, about 52,420 ETH were transferred by Three Arrows Capital to Curve’s ETH/stETH liquidity pool for staking. The tweet reads:
“The 3ac address (0x4862733B5FdDFd35f35ea8CCf08F5045e57388B3) withdraws about 71,000 ETH from Bitfinex, FTX, and Binance, and transfers to the associated address to add ETH to Curve’s ETH/stETH fund pool, a total of 52,420 ETH has been deposited today.”
However, Etherscan data reveals that about 30,000 ETH were also transferred recently to the same Curve’s Ethereum staking pool. Three Arrows Capital has increased Ethereum staking in the Lido and Curve liquidity pools, increasing staked Ethereum and rewards.
Recently, Three Arrows Capital had withdrawn nearly 7500 ETH from crypto exchanges FTX and Deribit and transferred it to Lido’s liquidity pools. After the purchase, the Ethereum price shoots above $3000 from $2800.
According to the Etherscan data, the hedge fund has already staked nearly $150 million worth of ETH on Lido and Curve liquidity pools on March 22.
Thus, the hedge fund Three Arrows Capital might be looking to become a validator on the Ethereum blockchain as it continues to deposit Ether into liquidity staking pools. Moreover, the company is also accumulating more Ethereum (ETH).
Ethereum Staking Under the ETH 2.0
Ethereum will transition from a proof-of-work (PoW) protocol to proof-of-stake (PoS), which allows users to validate transactions and add blocks to the Ethereum blockchain. After the transition to ETH 2.0, users will be earning more as Ethereum staking yields and rewards will increase.
Thus, it seems Three Arrows Capital wants to explore the ETH 2.0 benefit as a validator, as it continues to stake Ethereum into liquidity pools.