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.
• Co-Founder Anatoly Crachilov 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.

Read more: Hedge Funds See 7.2% of Assets in Crypto by 2026: Report