Investment Firm Launches SEC-Registered Fund Built on the Ethereum Blockchain

Investment Firm Launches SEC-Registered Fund Built on the Ethereum Blockchain

The Arca US Treasury Fund just began selling shares of an Ethereum-based fund that is approved by the SEC.

The Ethereum community is definitely excited about the news, but some are wondering why it’s not picking up steam as a major story.

An Ethereum enthusiast Alex Fisher noted the importance of the news.

Arca, the Los Angeles based investment management firm received their “Notice of Effectiveness” on July 6th.

The fundamentals were spelled out in a statement by the SEC.


“The Fund’s shares (“ArCoins” or “shares”) can be transferred in peer-to-peer transactions on Ethereum, an open, public, distributed ledger that is secured using cryptography (referred to as a “blockchain”). Ethereum records transactions between two parties in a verifiable and permanent way, referred to as “immutability.” There are no share certificates, and because the shares can be transferred in peer-to-peer transactions using Ethereum’s technology, the shares are characterized herein as “digital securities.” For more information, including the costs and risks of effecting transactions on Ethereum, see “Peer-to-Peer Transactions,” “About the Digital Securities” and “Risks of Digital Securities.”

Arca CEO Rayne Steinberg thinks the move is a leap forward for the cryptocurrency sector.

“Our announcement today is a ground-breaking and transformative step toward the unification of traditional finance with digital asset investing as this new category of regulated, digital investment products is made available to investors.”

Jerald David, president of Arca Capital Management expanded into the reason why this step is so important for cryptocurrency investors. 

“It is the first time that the blockchain will be integrated into an SEC-registered fund’s framework,” David noted.

He also commented on the importance of custodial features that will aid crypto newcomers. He said the fund will offer services to prevent mistakes such as losing one’s private keys and the fund will also help to protect from fraudulent actors. The goal, he says is to provide a service where there is “no need for a financial intermediary like a broker since investors can purchase ArCoin directly.”

If successful, Arca’s ArCoin can become a widely used financial tool and investment vehicle. 

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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.