Arca Is Latest Crypto Fund to Launch a Bitcoin Trust

Rayne-Steinberg-Arca
25 February 2021

Crypto hedge fund Arca is launching a bitcoin trust product, according to documents filed Thursday with the U.S. Securities and Exchange Commission (SEC).

The product, which launches with $100,000 sold so far, appears to be the California-based digital asset manager’s first foray into bitcoin offerings. Arca’s previous products banked on small to mid-cap cryptos and a U.S. Treasurys token called ArCoins that served as a proof of concept for Ethereum-based securities.

Arca joins a crowded field of asset managers aiming to woo investors who want exposure to bitcoin without directly owning the crypto themselves. BlockFi, Osprey Fund, CrossTower, Bitwise and others have all rushed this year to make bitcoin investment vehicles a reality. Their funds and trusts compete with Grayscale, the issuer of by far the largest bitcoin trust product. (Grayscale is owned by CoinDesk parent company Digital Currency Group.)

For its part, Arca is taking $25,000 minimum investments (Grayscale’s minimum is $50,000). Other details, like the annual fee, were not available at press time. Arca did not immediately respond to CoinDesk’s request for comment.

Disclosure
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.