Crypto Hedge Fund Arca to Lay Off 30% of Its Staff

UTC by Darya Rudz · 3 min read
Crypto Hedge Fund Arca to Lay Off 30% of Its Staff
Photo: CoinDesk / Flickr

The company cited the challenging environment as a reason behind its headcount cut.

Amid crypto winter and uncertain market conditions, companies continue to employ cost-cutting measures that often include layoffs. Digital asset management firm Arca is one the latest on the list of those currently in the middle of staff downsizing. Arca has reduced its headcount by as much as 30% (currently, it has only 66 employees in total), explaining the decision to lay off a third of its staff in a challenging environment.

Arca representative stated:

“Growth has been hard to predict in this extended bear market and uncertain regulatory environment. Our headcount adjustment will allow us to preserve capital and resources giving us a greater chance of success until this sector experiences a shift in sentiment and a clear regulatory picture.”

Last year, Arca shut down its Digital Yield Fund within its cost-cutting strategy. Digital Yield Fund was claimed to be the first actively managed income fund in the digital-assets sector. Its goal was to offer a digital-asset investment with minimal volatility, targeting effective yields in the low double digits. However, the fund functioned for less than a year because of the market downturn. Exposure to TerraUSD (UST) stablecoin that collapsed has also affected Digital Yield Fund’s operation.

Following the closure of the Arca Digital Yield Fund, Arca’s vice president of portfolio management Hassan Bassiri left the company. Bassiri co-managed the Arca Digital Yield Fund with Arca Chief Investment Officer Jeff Dorman. Notably, Hassan Bassiri played a crucial role in managing the fund, and his departure had an impact on Arca’s portfolio management and investment strategies. Bassiri’s expertise in mergers and acquisitions and decentralized finance (DeFi) made him a valuable asset to the firm.

About Arca Fund

Founded in 2018, Arca provides investment products and solutions to guide professionals and institutions into a digital economy powered by blockchain. The company consists of Arca Investments, which is an asset management arm, and Arca Labs, an innovation division. Arca’s flagship hedge fund strategy, the Arca Digital Assets Fund, invests in securities via tokens, equities, bonds and other instruments issued by companies in the digital asset ecosystem. Meanwhile, Arca Labs pioneers innovative products in a digital structure that aim to revolutionize the way how people think about investments.

Back in 2021, Arca raised $10 million in a Series A funding round led by RRE Ventures with additional participation from Alex Tisch, President of Loews Hotels & Co and a coalition of top financiers led by Littlebanc Advisors. In 2022, Arca reached a $50 million cap in a raising round run by its Arca NFT Fund.

Arca has raised a total of $80M so far. Its leading investors are Alex Tisch and  RRE Ventures.

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