Arca, an altcoin hedge fund with nearly $500 million in assets under its management, has recently been revealed to be selling out. This came after he told investors he was investing in the Terra ecosystem, which collapsed in May. He came close to doubling his fund’s sales in a year. Here are the details…
The amount of sales in Arca’s fund increased
The firm filed a document with the US Securities and Exchange Commission (SEC) this week. Arca Digital Assets Fund, which invests in the tokens of crypto companies, said the amount of sales increased to $ 191.7 million from $ 109 million recorded at the beginning of October 2021. In addition, the number of investors in the fund open to new investors increased from 333 to 576 among applications. The type of SEC notification Arca uses typically involves the amount of money investors put into the fund or sales.
However, some companies instead provide the fund’s assets under management. This reflects performance. According to Arca’s investment advisor registration documents, the Arca crypto-assets fund had a gross asset value of $234.3 million as of June 30. In an investor letter sent in May, Arca revealed that Terra is investing in its native token LUNA and its stablecoin TerraUSD (UST).
Arca announced its investment in altcoin Terra
As we reported on Kriptokoin.com, Arca announced that Terra is investing in the LUNA token and the ecosystem-owned algorithmic stablecoin UST. But the algorithmic stablecoin suffered a major crash. UST lost its peg to the US dollar. This also negatively affected LUNA. The two coins witnessed a dramatic collapse. Arca stated that he was holding LUNA at the time the letter was written. He also announced that he still foresees a recovery for Terra tokens.
According to the firm’s website, Arca is creating three more funds created within the framework of its Digital Assets tool. The first is the actively managed Arca Digital Yield, which uses Terra’s UST as its core holding. The second is Arca Endeavour, with a venture capital focus for early-stage companies. The last is Arca NFT, which provides exposure to non-fungiable tokens (NFTs). According to the data, the gross asset values of the funds were $53 million, $10 million and $24.4 million at the end of June.
The latest developments in the Terra ecosystem
Do Kwon, the founder of the Terra ecosystem and others involved in the TerraUSD project, are facing many lawsuits. Aggrieved investors filed a $57 million class action lawsuit. The class action claims that Kwon and others fraudulently misrepresented TerraUSD’s price stability. The lawsuit argues that despite promises, TerraUSD is not “stable by design.” He claims that he was unable to maintain the price constant and recover from losses. This development was the last of many investigations and lawsuits against Kwon.
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