Hassan Bassiri, the Vice President of Portfolio Management at crypto hedge fund Arca, has left the firm. Although the reasons and timing for his departure have not been disclosed, his exit follows the closure of the Arca Digital Yield Fund, which he co-managed with Arca Chief Investment Officer Jeff Dorman.

Arca is a crypto hedge fund that manages three other investment vehicles, including the flagship Digital Assets Fund, the Arca Endeavor Fund focused on venture capital and an NFT fund. The firm’s investment strategies are centered around cryptocurrencies and blockchain technology. Arca was founded in 2018 by Rayne Steinberg, who previously co-founded WisdomTree, a publicly-traded asset management company. Steinberg founded Arca to provide investors access to the emerging crypto industry, which has snowballed in recent years.

The crypto industry has seen tremendous ups & downs in the last two years after the total market capitalization of cryptocurrencies reached an all-time high of over $2.5 trillion in October 2021. The industry has been driven by a surge in demand from institutional investors, who are increasingly looking to add cryptocurrencies to their portfolios. Arca has been at the forefront of this trend, offering a range of investment vehicles allowing investors to gain crypto industry exposure. However, the closure of the Arca Digital Yield Fund has raised questions about the firm’s portfolio management and investment strategies. The fund was launched in the summer of 2021 but was closed in August due to exposure to Terra’s UST stablecoin and the subsequent fallout. The fund’s closure highlights the risks associated with investing in cryptocurrencies, which are known for their volatility and lack of regulation.

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The departure of Hassan Bassiri, who played a crucial role in managing the Arca Digital Yield Fund, may impact the firm’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.

The current state of the crypto market is also a factor that may impact Arca’s investment strategies. The market has seen significant volatility in recent months, with the prices of many cryptocurrencies fluctuating wildly. A range of factors, including regulatory uncertainty, market sentiment, and the actions of large investors, has driven this volatility. The departure of Hassan Bassiri may further contribute to this volatility, as investors may interpret his exit as a signal of uncertainty at Arca. However, it’s important to note that Arca has a strong track record in the crypto industry and has weathered market volatility in the past.

What does Hassan Bassiri’s Departure Mean for Stakeholders and Investors? 

While the specific reasons for his departure have not been disclosed, it’s clear that his role at Arca was significant. His departure may lead to reshuffling the firm’s portfolio management team and re-evaluating its investment strategies. However, it’s important to remember that Arca has a deep talent bench and a strong track record of successfully managing investment vehicles in the cryptocurrency industry. The firm’s other investment vehicles, including the flagship Digital Assets Fund, have performed well and continued to attract investor interest.

In conclusion, the departure of Hassan Bassiri from Arca is a noteworthy event in the crypto industry. It highlights the risks associated with investing in cryptocurrencies and the importance of solid portfolio management and investment strategies. Nonetheless, it’s important to remember that Arca has a strong track record in the industry and is well-positioned to weather market volatility in the future.