Arca, a Los Angeles-based hedge fund, has announced a 30% reduction in its workforce due to the ongoing crypto winter and regulatory uncertainty. The company's spokesperson stated that the bear market and uncertain regulatory environment have made growth hard to predict.

The headcount adjustment is aimed at preserving capital and resources until the sector experiences a shift in sentiment and a clear regulatory picture. Arca has two divisions, Arca Investments and Arca Labs, and raised $10 million in a Series A funding round in 2021.