Nickel Digital Rotates Flagship Arbitrage-Strategy Fund Largely Out of Crypto Into Cash: Report

The May sell-off in crypto has seen a number of leveraged positions held by investors with losses.

Jul 2, 2021 at 2:55 p.m. UTC
Updated Sep 14, 2021 at 1:20 p.m. UTC

Hedge fund Nickel Digital Asset Management put its flagship arbitrage-strategy fund largely into cash during the crypto market downturn, Bloomberg reported.

  • The Digital Asset Arbitrage Fund, which launched in 2019, focuses on crypto assets. It has seen positive monthly returns since its inception and has gained about 13% this year, Bloomberg said.
  • The May sell-off in crypto saw a number of leveraged positions, especially those of retail investors, with losses.
  • Anatoly Crachilov, co-founder of the hedge fund, said he expects the doldrums will end soon because institutional investors are increasingly interested in the assets.
  • “The sideways market conditions throughout the month led us to exercise financial discipline and keep powder dry until risk/reward of re-emerging market opportunities warrant efficient deployment of capital,” Crachilov said.
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