Three Arrows reports more than $1.2 billion position in Grayscale's GBTC

Three Arrows Capital has disclosed a more than $1 billion position in Grayscale's Bitcoin Trust in a new filing submitted to the U.S. Securities and Exchange Commission.

The move by the Singapore investment firm follows a similarly large position in the trust placed earlier this year to capitalize on the premium at which it trades relative to bitcoin. Previously, the firm held 6.26% of GBTC shares, worth $259 million.

According to the most recent filing, the firm's position represents $1.24 billion. The firm's current position represents 36,969 bitcoin, or 6.1% of GBTC's holdings.

"We continue to enjoy working with the Grayscale team and look forward to investing more in the crypto ecosystem," said Kyle Davies, co-founder of Three Arrows Capital.

According to Three Arrows, the position is the largest in Grayscale's Bitcoin Trust. In lockstep with bitcoin's surge in price, the assets managed by Grayscale across its product suite have surged. Its GBTC product offers investors a way for investors to obtain exposure themselves to bitcoin through a vehicle that's structured as a security.

According to data from The Block, the trust's holdings top 607,000 BTC.

The product's shares typically trade at a high premium — which allows traders to execute an arbitrage trade by borrowing shares of the trust. GBTC's weekly premium has tightened over the last several years, standing at 18% — down from more than 100% in the summer of 2017.