Arca Closed The TerraUSD-exposed Digital Yield Fund

According to CoinDesk, due to the general market collapse, crypto hedge fund Arca closed its Digital Yield Fund less than a year after it was established. At the time of its termination, the fund had somewhat more than $20 million in assets under management, and the amount was refunded to investors, the source said.

Arca CEO Rayne Steinberg confirmed in an email to CoinDesk:

“After a strategic business review, we have decided to close our Digital Yield Fund which took effect August 31. Given changing market conditions, we believe that this decision was in the best interest of our investors.”

In September 2021, Arca unveiled the actively-managed Digital Yield Fund, aiming for low double-digit effective rates. The fund’s annual Investment Adviser registration forms show that as of June 30, its gross asset value was $53 million.

Investors received a message confirming the fund’s exposure to the asset in May when TerraUSD lost parity with the dollar. After that, there were rumors that the company was bankrupt, but these were later denied by the company.

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