Is 3AC a good crypto hedge fund?

Three Arrows Capital, a crypto-focused hedge fund, has to meet a deadline on Monday to repay more than $670 million in loans or face default, in a case that could have a ripple effect across the digital asset market. 3AC, as it’s also known, is one of the most prominent crypto hedge funds around and is known for its highly leveraged bets.

How did 3AC borrow?

But at the big money levels at which 3AC played, borrowing was largely a matter of relationships, not much different from the way typical hedge funds rely on the confidence of their bankers. 3AC borrowed from the biggest crypto lenders without disclosing much about its finances.

Does 3AC have a liquidity issue?

3AC, as it’s also known, is one of the most prominent crypto hedge funds around and is known for its highly leveraged bets. But with billions of dollars being wiped off the digital coin market in recent weeks, the hedge fund is facing a potential liquidity and solvency issue.

Is 3AC the adult in the room?

“3AC was supposed to be the adult in the room,” said Nik Bhatia, professor of finance and business economics at the University of Southern California. As recently as March, Three Arrows Capital managed about $10 billion in assets, making it one of the most prominent crypto hedge funds in the world.