Crypto hedge fund Arca is one of many likely suffering considerable fallout from the sudden and dramatic collapse of the Terra blockchain’s LUNA-powered stablecoin, UST.

The firm, which manages $500 million in assets, told its limited partners in a note sent out Tuesday it believed Terra’s teetering UST stablecoin would eventually regain its peg and concluded the situation created a buying opportunity.

Arca said in the note it held an ad hoc investment and risk committee meeting to discuss the situation. On Monday night, UST had fallen to a low of 63 cents and LUNA was trading at $24.60; as of press time on Wednesday, UST was still languishing well below $1 at 63 cents and LUNA had tanked below $1.15, according to CoinGecko.

“After this analysis, we felt, and continue to feel, that UST will ultimately maintain its peg and a number of attractive opportunities had become available,” Arca CEO Rayne Steinberg wrote to investors on Tuesday. “For example, we were able to purchase UST at a significant discount to par in the DYF (Digital Yield Fund) and then deposit with FTX who were paying 100% APY (annual percentage yield) given the buyer/seller imbalance during peak fear.”

Arca declined to comment. FTX, a crypto exchange, didn't reply to a request for comment.

Arca runs a Digital Assets Fund, in which LUNA is a core holding, according to the note. UST, meanwhile, is a core stablecoin in the firm’s Digital Yield Fund, the firm said in the letter. Galaxy Digital’s Vision Hill unit is an anchor investor in Arca. Galaxy boss Mike Novogratz famously inked a prominent LUNA tattoo on his left arm in January.

“We have significant experience in distressed situations from 2008/2009 up to and including SUSHI and LEO (Bitfinex) in recent years,” Steinberg wrote in the note, referring to past crises. “We welcome these opportunities to be buyers when others are fearful.”