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  • Writer's pictureMichael Schwartz

In the Arena | September 1, 2023

Updated: Oct 3



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.

 

We believe that digital asset and blockchain technology will be the base layer underpinning

commerce and finance on a global scale. This month we share a few observations on “why

invest in the sector” and “why you haven’t yet”.


WHY INVEST IN THE SECTOR

  • “Opportunity to invest in an early stage disruptive technology” – publicly traded digital assets represent financial interests in a new computing paradigm

  • “Many ways to win” – the technology has numerous and expansive use cases across finance and commerce

  • “Exposure to ‘what if we’re right’” – a small allocation provides exposure to the asymmetric upside of being correct about the commercial success of digital asset technology in trillion dollar markets.

WHY YOU HAVEN’T INVESTED YET

  • “We don’t need new money” – millions of people who live outside the United States do, and there are numerous and expansive use cases for digital assets and blockchain technology beyond new forms of money

  • “We don’t need new banks” – technology that facilitates the transfer of value (money, stocks, property) that is faster, cheaper and more inclusive will ultimately win

  • Crypto is only used for illicit purposes” – like the US dollar, the Euro and the Renminbi, there is relatively a small percentage of digital assets used by criminals; the vast majority of both fiat currency and digital assets are used in legitimate and legal commerce and finance


Chart (Image) of the Month



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

www.arenadigital.capital

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