The Arca Digital Yield will be the first of its kine actively managed fund in the crypto space providing more investment flexibility than the passive counterparts.
On Monday, August 2, the digital asset management company Arca launched its Arca Digital Yield Fund. As per the company, this will also be the first actively managed yield fund in the crypto space.
Besides, with this fund, Arca aims to offer its customers some low double-digit returns with minimal volatility. Arca has already kickstarted this fund with early access capital coming from existing and internal investors. The digital asset management firm announced that the fund will be available to other investors later this year.
Arca CEO Rayne Steinberg said that their goal is to make Arca a one-stop destination for exposure to crypto-assets. In the press release, the CEO added:
“We are taking the years of operational experience gained managing our broad, flagship fund, where income-producing strategies were an important feature, and creating a new product. We have been maturing this product for quite some time and now that the ecosystem, opportunity set and investor demand have reached advantageous levels, we are launching this defined yield product.”
Arca’s Swift Expansion in the Crypto Space
Arca has been offering investors a basket of funds in the cryptocurrency space. It currently offers the Arca AI Bitcoin Trust, the Arca Digital Assets Fund, and ArCoin – a closed-end fund. Arca’s main goal is to cater to institutions and accredited investors in the United States.
Arca CIO Jeff Dorman and Portfolio Manager Hassan Bassiri, shall be jointly managing the newly launched Arca Digital Yield fund. Dorman also believes that an actively managed fund provides much flexibility. Thus it is better than other passively managed fund options available in the market. The Arca CIO further stated:
“We will leverage our team’s experience, using similar and complementary strategies to those already employed by our other digital assets funds. As the digital asset ecosystem continues to mature, Arca is leading investors through new territory with the same focus on market strategy, capital preservation and growth, and investment risk.”
Last month, Arca Labs also secured major approval from the US Securities and Exchange Commission (SEC) to run an Ethereum-based fund that will run with Ethereum-backed ArCoin.
This is basically the Arca US. Treasury Fund, a close-ended fund registered by the SEC. the digital shares of this fund aka ArCoins trade atop the Ethereum blockchain network.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.