Arca Doubled Sales Of Its Flagship Fund In One Year Although Related To Terra
Arca, a crypto hedge fund with about $500 million in assets under management, nearly doubled sales of its flagship fund in one year, despite informing investors that it was exposed to the Terra ecosystem, which crashed in May.
The Arca Digital Assets Fund, which invests in crypto company tokens, has raised $191.7 million as of October 24, up from $109 million at the start of October 2021, according to a filing with the US Securities and Exchange Commission this week.
Between the filings, the number of investors in the fund, which is still accepting new investors, climbed from 333 to 576.
Arca disclosed exposure to Terra’s native token, LUNA, and stablecoin TerraUSD, in a May investor letter. In a stunning fall, the algorithmic stablecoin lost its peg to the dollar, taking LUNA with it.
The company stated that Digital Assets possessed LUNA at the time of the letter, implying that the Terra tokens would recover.
According to the firm’s website, it operates three more funds based on the Digital Assets vehicle’s framework: Arca Digital Yield was actively managed and included Terra’s UST as a key investment, as well as early-stage venture capital-focused Arca Endeavor and Arca NFT for non-fungible token exposure. At the end of June, the funds’ gross asset values were $53 million, $10 million, and $24.4 million, respectively.
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