Arca Is Competing Against Several Crypto-Fund Rivals by Launching Bitcoin Trust
According to the latest reports, another firm has enlisted itself among the firms that are operating the Bitcoin (BTC) Trust. It has been reported that the fund manager from California has just filed a request for registration at the US SEC. The firm has submitted the registration request with the aim to launch its own Bitcoin Trust titled “Arca Accredited Investor Bitcoin Trust”.
The team from the United States fund manager has expressed exactly what it intends to do with the launch of the Bitcoin (BTC) Trust. Arca has revealed that with the launch of the Bitcoin (BTC) Trust, it intends to challenge and compete with the most prominent Trusts in the crypto-verse.
One of the top Bitcoin (BTC) Trust fund managers Arca had in mind while talking about competing was none other than Grayscale Bitcoin (BTC) Trust (GBTC).
As per the finance manager of the fund manager “Arca”, the registration request filed at the US SEC is the Form-D one. In the registration request, it has been mentioned that Arca now intends to provide its customers/users with a bitcoin (BTC) trust offering.
The request also confirms that the company has named the new bitcoin (BTC) trust as “Arca Accredited Investor Bitcoin Trust”. The firm has also revealed that the users/investors benefiting from the trust will be required to invest at least $25k or more in the trust.
By offering the minimum investment amount of $25k to the investors, Arca has already proved that it is ready to take on Grayscale. The reason behind this is because the minimum investment required at Grayscale double what is required at Arca. At Grayscale, the investors are required to make a minimum investment of $50k in order to acquire the platform’s services and benefit from them.
Apart from the Bitcoin (BTC) Trust, Arca is also involved in providing customers with Arca U.S. Treasury Fund as well as other cryptocurrency fund products.
When it comes to the cryptocurrency fund, it has been registered under the Investment Company Act of 1940. The fund exists as a closed-end fund that is responsible for issuing shares using the digital securities mechanism.
The company has explained that these digital securities can be transferred using blockchain technology and networks.
As for the Arca U.S. Treasury Fund, the particular fund was launched by Arca back on July 6, 2020. Now, it is planning to launch the Arca Accredited Investor Bitcoin Trust will solely focus on the investments and trust for Bitcoin (BTC).
Apart from competing with Grayscale, Arca plans on competing with other trust companies that include Crosstower, Bitwise, Blockfi, and Osprey Fund.
If Arca is to compete against Grayscale, then it needs to make sure that the services/benefits it provides are more effective and attractive than that of Grayscale’s.
As of now, the total Assets Under Management that Grayscale has accumulated just for Bitcoin (BTC) are around $23 billion.