Another firm is joining the bitcoin trust sector, as the California fund manager Arca has filed a registration with the U.S. Securities and Exchange Commission (SEC) for its Arca Accredited Investor Bitcoin Trust. The trust will compete with a number of competitors including Grayscale’s popular bitcoin investment vehicle GBTC.
Arca Files With the US SEC to List Its Accredited Investor Bitcoin Trust
The finance manager Arca has filed a Form D registration with the U.S. SEC in order to provide investors with a new bitcoin trust offering. The fund will be called the “Arca Accredited Investor Bitcoin Trust” and it will be taking investments of $25k or more, according to the Arca filing. This is half the value of Grayscale’s GBTC minimum investments set at $50k.
Arca has other crypto fund products and the Arca U.S. Treasury Fund. The fund is “a closed-end fund registered under the Investment Company Act of 1940 issuing shares as digital securities that are transferable using blockchain technology,” according to the company. The Arca U.S. Treasury Fund dubbed “arcoin” was launched on July 6, 2020. The Arca Accredited Investor Bitcoin Trust will focus on bitcoin (BTC).
Arca Will Compete With Grayscale, Bitwise, Crosstower, Osprey Fund, and Blockfi
Arca will compete with the Grayscale Bitcoin Trust, a popular investment vehicle that commands more than 3% of the entire BTC supply. Grayscale purchased $350 million worth of BTC this past week as the trust now has around 690,000 BTC held in custody. Arca’s Form D registration does not disclose the issuance size and will use the federal exemption Rule 506(c). The California-based firm will be competing with not just Grayscale but a number of other funds joining the bitcoin trust race.
News.Bitcoin.com recently reported on the Bitwise fund and the offering from the financial services firm Blockfi. But the Arca bitcoin trust will also compete with trusts stemming from Crosstower, and the Osprey Fund as well. All of the trusts have different frameworks for fees that are different from Grayscale’s fee structure.
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