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Ethereum is the most popular altcoin in the crypto market. It recently crossed the $4k price region, which is a crucial price mark for the altcoin. ETH successfully remained above the $4,000 price mark, however, in the last seven days it has seen quite the fluctuation in its price.
Ethereum is now trading at $3,885 (at the time of writing). Here is a graph by CoinGecko that shows the ups and downs in ETH’s price over the last week.
Even though the price of ETH has plunged, its value seems to be unaffected as a major crypto hedge fund has reportedly invested in it. Let’s find out more about this and what it could mean for the digital asset.
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Details About Crypto Hedge Fund’s Investment in Ethereum
Ethereum is undoubtedly one of the most popular and significant digital assets in the crypto space. It finally reached the $4k price mark after months of anticipation and has now dropped below it. However, it seems that the prominence and value of the second-largest crypto asset have not been affected.
As mentioned above, a crypto hedge fund has made a huge investment in the altcoin. The crypto-focused hedge fund to do so is Three Arrows Capital, which is based in Singapore.
As per reports, Three Arrows Capital has invested more than $84 million in Ethereum as its price dropped below the $4k price mark.
Colin Wu, the blockchain journalist, stated that this crypto hedge fund has withdrawn millions from crypto exchanges such as Coinbase and Binance and transferred them to its wallet.
According to Wu, the company also recently transferred 14,833 ETH from the exchanges to its wallet, which is worth around $56 million.
On December 7th, the firm transferred around 91,477 ETH from the cryptocurrency exchanges to its wallet. After this transfer, Three Arrows Capital also reportedly transferred around 22,416 ETH to its wallet in the past week. During this transfer, the price of ETH dropped from $4,400 to $3,700, as shown in the graph above.
Even though Three Arrows Capital seems to be in Ethereum’s corner, the CEO Su Zhu has stated that Ethereum charges a high transaction fee, especially for beginners.
What Should ETH Investors and Traders Know?
The price of the largest altcoin by market cap has seen quite the drop after surging higher than $4,000. However, the crypto market is known to be volatile and price corrections are sometimes good as they boost an upcoming price surge.
Ethereum is not the only crypto asset that has seen ups and downs in its price. Therefore, it can be anticipated that the price of the popular altcoin will start moving with an upward momentum soon, even though it is yet to be seen in real life.
The investment by the Singapore-based crypto hedge fund has indeed given hope to people who are in Ethereum’s corner.
If you are looking to step into the crypto space and invest in digital assets such as Ethereum then you can click on SwissBorg or Kraken (U.S. citizens).
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