Arca Launches Actively Managed Crypto Fund

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In Brief
  • Digital asset management firm Arca launches actively managed fund ‘Arca Digital Yield Fund.’

  • The fund aims to provide investment opportunities with minimal volatility and low double-digit effective yields.

  • Arca offers various investment products targeting the crypto space, including a fund that offers exposure to equities of blockchain companies.

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Digital asset management firm Arca has launched a new actively managed crypto fund that is aiming to offer low double-digit effective yields.

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In a press release published on Aug 2, digital asset management firm Arca announced that it had launched the “Arca Digital Yield Fund,” an actively managed income fund. The objective of the fund is to provide investment opportunities with minimal volatility and low double-digit effective yields. Initially available only to internal and existing investors, it will be made available for external investors and the public later this year.

Arca is also hosting an online webinar that is open to qualified institutional buyers and accredited investors. The fund’s executives will discuss its strategy, the instruments used to generate yield, counterparty risks, and the overall macro yield environment.

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Speaking about the advantages over other funds, Arca’s Chief Investment Officer Jeff Dorman said,

“We believe an actively managed fund is a better option than the passive yield generating options currently available in the market due to its flexible structure, allowing us to take advantage of variable rates of return across different segments of the asset class…Arca is leading investors through new territory with the same focus on market strategy, capital preservation and growth, and investment risk.”

Arca offers various investment products targeting the crypto space, including a fund that offers exposure to equities of blockchain companies. The team behind the project has extensive experience on Wall Street and is marrying its understanding of traditional finance with the innovative potential of blockchain tech.

Crypto asset managers having a ball

Among Arca’s offerings are the Arca Digital Assets Funds and the Accredited Investor Bitcoin Trust, a way of conveniently gaining exposure to bitcoin’s price. This is proving popular among investors who hold long-term prospects for bitcoin.

And generally speaking, digital asset managers have been having an excellent time since the start of the bull run last year. Numerous high-profile names have released new products, including Grayscale Investments, which released a DeFi fund. The European market is also doing better, with German financial institutions now allowed up to 20% in their holdings.

A survey of 100 hedge funds showed that these entities plan to significantly increase their investment in crypto over the next five years. Executives expect to hold an average of 7.2% of their assets in cryptocurrencies by 2026, which would put that figure above $300 billion.

However, there is still some reservation about crypto in the hedge fund world, mostly concerning volatility. But if the increased institutional investment in the past two years is anything to go by, hedge funds too may drop that concern as the market expands.

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Rahul's cryptocurrency journey first began in 2014. With a postgraduate degree in finance, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has guided a number of startups to navigate the complex digital marketing and media outreach landscapes. His work has even influenced distinguished cryptocurrency exchanges and DeFi platforms worth millions of dollars.

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