According to investment documents obtained by The Block, OTC firm TPS Capital, run by Three Arrows founders Su Zhu and Kyle Davies, was pitching investors a new carry trade, known as Grayscale Bitcoin Trust GBTC, to investors before the crisis hit. arbitrage opportunities, the company plans to charge a 20% management fee through an affiliated OTC firm.
ETF analyst James Seyffart explained: “This operation is the equivalent of structured notes in traditional finance, but no matter what happens, they take ownership of your Bitcoins and also make money on your BTC. They get your BTC. , and in either case take money/return from investors.”