Crypto hedge fund Arca has laid off 30% of its staff, citing an ongoing crypto winter and regulatory uncertainty.
“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.” a Arca’s spokesperson told CoinDesk.
According to LinkedIn, the Los Angeles-based hedge fund currently has 66 employees. Founded in 2018, the company has raised $10 million in a Series A funding round in 2021. The fund has two divisions: the investment management division Arca Investments and the new innovation-focused division, Arca Labs.
According to previous news, at the end of April, Hassan Bassiri, vice president of portfolio management at crypto hedge fund Arca, left the company. His profile is not on the company’s group page, and someone close to him confirmed his departure.
The time and reason for Bassiri’s departure were not disclosed. Before joining this crypto hedge fund, he spent a decade at Big Four accounting firm KPMG on the mergers and acquisitions team, including stints as a decentralized financial analyst (DeFi).
Bassiri departed months after the Arca Digital Productivity Fund – which he co-manages with Arca Chief Investment Officer Jeff Dorman – was closed. The Digital Profit Fund opened its doors in the summer of 2021, but Terra’s exposure to the UST stablecoin and the aftermath of that collapse led to the fund’s closure in August.