Share this article
Crypto Firm Arca Closed Its Terra-Exposed Digital Yield Fund
The fund was shuttered on Aug. 31 with around $20 million in assets under management, the CEO confirmed.
By Brandy Betz
Updated May 9, 2023, 4:01 a.m. Published Nov 4, 2022, 1:27 p.m.
Crypto hedge fund Arca shuttered its Digital Yield Fund less than a year after its launch due to the broader market downturn, a person close to the firm told CoinDesk. The fund had slightly over $20 million in assets under management at the time of its closure, and the capital was returned to investors, according to the person.
“After a strategic business review, we have decided to close our Digital Yield Fund which took effect Aug. 31,” Arca CEO Rayne Steinberg confirmed in an email to CoinDesk. “Given changing market conditions, we believe that this decision was in the best interest of our investors.”
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Arca announced the actively-managed Digital Yield Fund in September 2021 and targeted effective yields in the low double digits. The fund had a gross asset value of $53 million as of June 30, according to the firm’s annual Investment Adviser registration documents.
In an investor letter sent out in May, Arca revealed that the fund had exposure to Terra’s collapsed terraUSD (UST) stablecoin. The exposure didn’t force the closure, said the source, but was rather an example of the market turbulence that shifted Digital Yield’s risk-reward balance. Arca remains open to launching a similar product in the future, according to the source.
Arca manages three other funds. The flagship Digital Assets vehicle invests in the tokens of crypto companies and nearly doubled its sales to investors year-over-year to $191.7 million, according to a regulatory filing last week. The venture capital-focused Arca Endeavor and a non-fungible token (NFT) fund had gross asset values of $10 million and $24.4 million, respectively, at the end of June.
Read more: Crypto Investor Protocol Ventures to Shutter and Return Cash: Report
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Crypto Firm Tether Says It Wants to Take Over Italian Football Club Juventus
The issuer behind the most popular stablecoin said that if the bid succeeds, it prepares to invest $1 billion in the football club.
What to know:
- Tether said it aims to take over popular Italian football club Juventus FC.
- The firm proposed to acquire Exor's 65.4% stake in an all-cash offer, and intends to make a public offer for the rest of the shares.
- Tether reported net profits exceeding $10 billion this year, while its flagship token USDT is the world's dominant stablecoin with a $186 billion market capitalization.
Top Stories
