Executives from Three Arrows Capital have launched an NFT fund.

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Starry Night Capital intends to invest entirely in the market’s “most coveted” NFTs.

Three Arrows Capital (3AC) executives have formed a fund focused on collecting premium digital art in the form of nonfungible tokens (NFT).

Three Arrows Capital CEO Su Zhu, 3AC co-founder Kyle Davies, and pseudonymous NFT collector Vincent Van Dough formed the firm, named Starry Night Capital.

Van Dough announced the fund via a tweet on Tuesday, stating, “Our thesis is simple, we believe the best way to gain exposure to the cultural paradigm shift being ushered in by NFTs is owning the top pieces from the most desired sets.”

Zhu shared the tweet, adding, “Excited to make history together.”

3AC is a fund manager specialising in digital assets that was formed in 2012. The business has invested in prominent layer-one blockchains such as Ethereum, Avalanche, and Polkadot, as well as a diverse decentralised financial portfolio that includes blue chips Aave, Synthetix, and Balancer.

While details on the new fund’s roadmap are limited at this time, Van Dough disclosed that by the end of the year, Starry Night Capital aims to open a physical gallery “in a large city,” create an NFT education portal, and investigate additional “community-building projects.” They also stated:

“The NFT space is not a zero-sum game, it is driven by strong flywheel effects and functions best when the pie is growing for all.”

Zhu, Davies and Van Dough appear to have already teamed up to purchase nonfungible art together.

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On Friday, NFT enthusiast Pixelpete tweeted that he had sold his one-of-a-kind Art Blocks NFT of Dmitri Cherniak’s artwork “Goose Ringer” to Zhu and Davies in a transaction that Van Dough brokered. The NFT is from Cherniak’s collection “Ringers” — each of which was generated algorithmically on the Ethereum blockchain.

The pair paid 1,800 Ether (ETH) for the token (roughly $5.8 million). However, it is unclear whether Starry Night Capital will take possession of the artwork.

Van Dough’s wallet on the OpenSea marketplace also shows an impressive collection of 1,913 NFTs, including work from renowned NFT artist Pplpleasr.

On Twitter, the community’s reaction to the fund’s opening was mainly favourable, with names like Ryan Wyatt, YouTube’s head of gaming, and Bankless founder David Hoffman praising the team.

However, Twitter user Edgar Dubroviskiy questioned the idea of just purchasing the “top pieces” in the NFT sector, citing the exorbitant cost and lack of liquidity of premium NFTs.

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