Alchemy on blockchain – The transposition of bitcoins (BTC) on the Ethereum network (ETH) has been booming in recent months. Surprisingly enough, it is mainly the large institutional investment funds that are driving this trend.
Our opinion on Bitcoin (BTC) “
Three Arrows Capital breaks a record for bitcoin processing
The Three Arrows Capital fund is a hedge fund specialized in cryptosystems projects. Created in 2012, it offers its clients exposure to both the great classics, such as Bitcoin and Ethereum, and more recent projects in decentralized finance (DeFi).
However, this fund seems to prefer to have its Bitcoins in the form of tokens on Ethereum. Perhaps to take advantage of the returns of DeFi?
In any case, as CoinDesk points out, Three Arrows Capital has just completed the largest issue of this type of bitcoin. The asset manager BitGo created 2,316.56 WBTC (wrapped bitcoins) on behalf of the investment fund.
This conversion, worth approximately $24.5 million, exceeds the latest record of 1,999 WBTC issued by another investment and trading fund, Alameda Research. Alameda Research was accustomed to breaking records in this area (see below).
The 10 largest emissions of Tokenized bitcoins on Ethereum
114,057 bitcoins have „changed“ the blockchain
As a reminder, Tokenized Bitcoins, like WBTCs, are obtained by blocking „real“ BTCs on the Bitcoin blockchain, while a proportional number of tokens are simultaneously created (mint) on the Ethereum blockchain.
In this field, the Wrapped Bitcoin Project (WBTC) dominates the market. With 83,983 WBTCs out of the existing 114,057 tokenized bitcoins – a total of $1.2 billion at current rates.
RenBTCs come second, quite a long way behind with 21,030 renBTCs, according to Dune Analytics data.
Change in the number of tokenized bitcoins for each project – Source: Dune Analytics
Institutional investors are increasingly fond of cryptomoney in various forms. If they, too, start to follow the new DeFi trend, this could cause strong turmoil in the cryptosphere (not necessarily all positive, by the way). In the meantime, more and more bitcoins are piling up on Ethereum.