The agency has teamed with famous collector Vincent Van Dough to buy pricey NFTs with its Starry Night Capital fund.
The NFT market has surged since late July, and the rising costs for prime collections like Art Blocks and CryptoPunks, as well as a soaring trading quantity throughout the board, means that investors see dollar signs in crypto collectibles. Singapore-based Three Arrows Capital apparently believes so, today revealing plans to take a position closely into premier NFTs.
The cryptocurrency hedge fund at the moment introduced Starry Night Capital, a new fund targeted on “assembling the world’s best assortment of NFTs,” in response to its Twitter profile. To take action, the agency has partnered with pseudonymous NFT collector Vincent Van Dough, who has a substantial Twitter following and a big private NFT portfolio.
“Our thesis is simple, we consider one of the simplest ways to gain publicity to the cultural paradigm shift being ushered in by NFTs is owning the top items from probably the most desired units,” Vincent Van Dough tweeted at the moment. Three Arrows Capital co-founder Kyle Davies confirmed that Starry Night Capital goals to lift $100 million for the new fund.
An NFT acts like a deed of ownership to digital merchandise, including pictures, video clips, and interactive video game items. The market exploded in recognition earlier this year, generating $2.5 billion worth of trading quantity across the leading marketplaces. However, a recent resurgence has seen much more towering sums: marketplace OpenSea has processed more than $3 billion worth of transactions so far this month.
Starry Night Capital’s first high-profile acquisition is that of an Art Blocks NFT from Dmitri Cherniak’s Ringers assortment. The artwork, which was generated on the Ethereum blockchain via an algorithm, sold for 1,800 ETH ($5.66 million) on Friday. It’s the highest-value secondary market sale to date for an Artwork Blocks NFT, beating last week’s record of a chunk from Tyler Hobbs’ Fidenza project that sold for $3.3 million worth of ETH.
The pockets that hold the Ringers NFT additionally houses quite a few different Art Blocks NFTs, together with a Fidenza that was bought for 320 ETH ($1.07 million) on August 20. In keeping with data from CryptoSlam, Artwork Blocks has now generated $647 million value of a trading quantity, with the vast majority of that ($553 million) happening in August. Cmnnews explored the rise and recent success of Artwork Blocks last week.
In keeping with Van Dough, Starry Night plans to launch NFT-centric educational content, highlight up-and-coming artists, make its artwork accessible through virtual galleries and launch a physical gallery in a “major city” by the end of this year. Interestingly, Three Arrows CEO/CIO Zhu Su tweeted photos on Friday of Artwork Blocks NFT images—including the aforementioned Ringers piece—being displayed on a large screen in Shibuya, Tokyo.
Three Arrows Capital’s website lists investments in a number of cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin and DeFi protocols together with SushiSwap and Aave, in addition to crypto lending platform BlockFi and fund Multicoin Capital, among others. The agency additionally reported a big holding within the Grayscale Bitcoin Trust back in January, holding nearly 38.9 million shares or about 6.1% of the total issued shares at the time of disclosure.