Arca, The Only Crypto Hedge Fund Doubles Sales Despite Exposure To LUNA
Crypto hedge fund Arca currently has sales of $191.7 million. This year’s revenue nearly doubled its flagship fund’s sales over the past year, despite its strong exposure to LUNA.
According to Coindesk, crypto hedge fund Arca currently has around $500 million in assets under management, a number that has nearly doubled its flagship fund’s sales in a year. Interestingly, it was not affected by the Terra crash in May despite holding a large amount of LUNA tokens.
The Arca Digital Assets Fund, which invests in the tokens of crypto companies, had raised $191.7 million as of October 24, up from $109 million at the beginning of October 2021, the firm said in a filing this week with the U.S. Securities and Exchange Commission. The number of investors in the fund, which is still open to new investors, increased from 333 to 576 between the filings.
Arca disclosed exposure to Terra’s native token LUNA and its stablecoin terraUSD in an investment letter distributed in May. (UST). In a sudden collapse, the algorithmic stablecoin lost its peg to the dollar, taking LUNA with it. Arca claimed that at the time of the letter, Digital Assets held LUNA, which continued to forecast a rebound for the Terra tokens.
Unlike all the companies that have been with LUNA, Arca is still thriving after the big market crash in May during a long crypto winter.
Conversely, the crypto sector has also been crippled by the industry-wide sell-off following the collapse of LUNA and UST. Several companies including hedge fund Three Arrows and crypto lenders C and Voyager Digital have filed for bankruptcy, while Coinbase, BlockFi and Crypto.com have laid off thousands of employees.
Besides, September also saw a series of departures of executives, key positions of crypto companies.
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