In the Arena | March 1, 2026
- Michael Schwartz
- Mar 1
- 3 min read
“3 observations Tweets and a chart” on the latest in the digital assets sector
This month, we are highlighting 3 thought-provoking “crypto-Twitter” posts on X
The long game for crypto – Chris Dixon (Managing Partner, a16z)
In a reminder that meaningful technological shifts unfold over decades, not cycles, Chris Dixon argues that crypto remains early in its arc. Financial primitives, liquidity, and market structure are the foundation upon which more transformative applications will be built — a familiar pattern seen in prior platform shifts from railroads to the internet. We highlight that crypto’s long-term opportunity is not diminished by patience; it is defined by it.
Crypto’s Party Isn’t Over – Mike Cagney (Co-founder & Executive Board Chair, Figure)
In a message to builders, Mike Cagney argues that the conditions for meaningful progress in crypto have finally aligned. Much of the industry’s innovation occurred under the most restrictive regulatory and market regimes imaginable; today, builders are operating with regulatory tailwinds and real momentum. The success of Figure in putting loans on-chain demonstrates that progress is tangible, not theoretical. We highlight that regardless of short-term price action, the future of blockchain — and the decentralized networks that underpin it — is brighter than ever.
So what happened on 2/5? – Jeff Park (CIO, ProCap Financial, Inc.)
In dissecting the violent selloff on 2/5, Jeff Park argues the move was likely driven not by crypto-native stress, but by non-crypto multi-strategy investors de-risking across portfolios. That flow pushed Bitcoin into levels where short-gamma hedging mechanically accelerated downside, triggering a reflexive unwind of leveraged positions — not a continuation of crypto deleveraging from 10/10. The rapid reversal that followed reinforces the point: Bitcoin is now deeply embedded in traditional financial markets, where margin rules create short-term fragility but long-term asymmetry. We highlight that this growing integration sets the stage for sharper, more vertical moves when positioning flips — a structural setup that ultimately favors Bitcoin’s upside.
Chart of the Month – “Buying in the green box never feels comfortable. But is where the best returns begin”
Arena Digital Capital Partners is a liquid evergreen fund open to monthly subscriptions. We are always happy to discuss further with you or investors you think may have an interest in the sector. Please reach out to Bill Cline at williamc@arenadigital.capital.
Sincerely,
The Arena Digital Capital Management Team
Michael Schwartz, Michael Prober & William Cline
Arena Digital Capital Management was founded in January 2022 by three experienced traditional finance hedge fund professionals who have been deploying personal capital in the digital asset ecosystem since 2018. The team has managed billions of dollars of capital for high net worth individuals, family offices, and institutions ranging from pension plans and endowments to sovereign wealth funds. We have worked closely with institutional consultants, RIAs, and other advisors in serving their clients.
In May 2022 we launched Arena Digital Capital Partners, with the goal of providing a multi-strategy investment vehicle to access the digital asset ecosystem. Our mandate is to offer broad exposure across the growing digital asset and blockchain sector with an appropriate level of diversification, professional oversight, and manager selection. Our collection of skill sets and our history in the business allows us to understand, assess, and engage with the practitioners of this nascent asset class with a level of diligence required to be responsible stewards of capital. We are happy to periodically share our observations with you.
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