Who moves their Bitcoins on Ethereum? Institutionals!

Alchemy on blockchain – The transposition of bitcoins (BTC) to the Ethereum network (ETH) has exploded in recent months. Surprisingly enough, it is mainly large institutional investment funds that are driving this trend.

Three Arrows Capital bat un record de transformation de bitcoins

The Three Arrows Capital fund is a hedge fund specializing in cryptocurrency projects . Created in 2012, it offers its clients exposure to both great classics, such as Bitcoin Machine and Ethereum , as well as more recent decentralized finance (DeFi) projects.

However, this fund seems to prefer having its bitcoins in the form of tokens on Ethereum. Perhaps to make the most of DeFi’s returns?

In any case, as CoinDesk reports , Three Arrows Capital has just completed the largest issue of this type of bitcoin. The asset manager BitGo has thus created 2,316.56 WBTC (wrapped bitcoins) on behalf of the investment fund.

Worth around 24.5 million dollars , this conversion thus exceeds the latest record to date, of 1,999 WBTC issued by another investment and trading fund, Alameda Research .

The latter was however used to breaking records in this area

As a reminder, tokenized bitcoins , such as WBTC, are obtained by blocking “real” BTC on the Bitcoin blockchain, while a proportional number of tokens is simultaneously created (mint) on the Ethereum blockchain.

In this area, it is precisely the Wrapped Bitcoin (WBTC) project that largely dominates the market. With 83,983 WBTC about 114,057 bitcoins existing tokénisés – a total of $ 1.2 billion at current prices.

The renBTC are second, quite far behind with 21,030 renBTC , according to data from Dune Analytics.

Institutional investors are increasingly fond of cryptocurrencies in various forms. If they too get into the new DeFi fashion, this risks causing a strong stir in the cryptosphere ( not necessarily all positive ). In the meantime, more and more bitcoins are piling up on Ethereum.