Kyle Davies on Grayscale trade
From From $3B Collapse to Meme Coin Kings: Zhu Su & Kyle Davies · · Handsome Finance
“I think that sometimes you know it's it's hard to tell when the Music Stops but um there were a lot of things that felt sustainable actually really weren't so one was the grayscale trade which you know you're basically locking up your Bitcoin either into a trust and then you wait some period of time and you get the shares and you know we we had kind of thought well it's always going to be in premium or it's going to be or zero and then if it goes below they're going to allow redemption or they're going to approve it as ETF but what turn ended up happening is that there was this period where it was trading at Big Discount and they didn't improve ETF and so you were despite you put one Bitcoin into this trust the market uh because so many people had done the same trade they had decided to Value it at much lower than one Bitcoin it was as low as like half a Bitcoin for one Bitcoin trust and similar for for ethereum so that was something where I think you know the sizing on that should have been better um and at least um the kind of thinking about those scenarios”
On , Kyle Davies, Cofounder at Three Arrows Capital, spoke about Grayscale trade during From $3B Collapse to Meme Coin Kings: Zhu Su & Kyle Davies on Handsome Finance.
About Kyle Davies
Kyle Davies, co-founder of the bankrupt crypto hedge fund Three Arrows Capital (3AC), has given several interviews in late 2024. In a December 2024 appearance on the Future Money podcast, Davies stated he felt "awesome" about 3AC, describing it as a "10-year fund" with a "pretty wild 10-year period of success." He declined to apologize for the fund's bankruptcy, saying "companies go bankrupt, almost every company goes bankrupt." Davies said he and his co-founder Su Zhu are "still young" and "still think we can add value in various ways," including by telling "the next Three Arrows how to do things better when they go bankrupt." He also commented on the current crypto market, stating he is "very bullish" and that it is giving him "late 2019 / early 2020 vibes." Davies has also discussed his legal situation and current location. He stated he would not return to Singapore "immediately" to face potential jail time, but said "these things resolve at some point — there are settlements." Davies claimed he is in Europe and said he does not see a reason he could not return to the United States, where his family is, but has not done so. He attributed his and Zhu's failure to appear for a court date to their lawyers, saying "maybe we should sack our lawyers for not informing us about the court date." Davies also discussed his involvement in the failed project OpenX, which he described as an adviser role, and a new project called OX.