Another company is joining the Bitcoin trust field because California-based fund manager Arca has applied to the U.S. Securities and Exchange Commission (SEC) for the registration of an Arca-accredited investor Bitcoin trust. The trust will compete with many competitors including GBTC, Grayscale’s most popular Bitcoin investment tool.
Arca submits documents to the US Securities and Exchange Commission listing its approved investor bitcoin trusts
The financial manager Arca has filed a Form D registration with the US Securities and Exchange Commission (US SEC) in order to provide investors with new bitcoin trust products. According to Arca documents, the fund will be called “Arca Accredited Investor Bitcoin Trust” and it will accept investments of $25,000 or more. This is half of the Grayscale GBTC minimum investment ($50,000).
Arca also has other cryptocurrency fund products and Arca U.S. Treasury funds. The company stated that the fund is “a closed-end fund registered under the Investment Company Act of 1940, issued in the form of digital securities, and can be transferred using blockchain technology.” The US Arca US Treasury Fund named “arcoin” was released on July 2020. Established on June 6. The Arca-accredited Investor Bitcoin Trust will focus on Bitcoin (BTC).
Arca will compete with Grayscale, Bitwise, Cross Tower, Osprey Fund and Blockfi
Arca will compete with Grayscale Bitcoin Trust, which is a popular investment tool that accounts for more than 3% of the entire BTC supply. Last week, Grayscale purchased $350 million worth of BTC because the trust currently has 690,000 BTC in custody. Arca’s Form D registration does not disclose the size of the issuance and will use Federal Exemption Rule 506(c). The California-based company will not only compete with Grayscale, but also with many other funds that have joined the Bitcoin Trust competition.
News.Bitcoin.com recently reported on the release of Bitwise Fund and the financial services company Blockfi. But the Arca Bitcoin Trust will also compete with the trusts created by Crosstower and Osprey Fund. All trusts have a fee structure different from Grayscale’s fee structure.
What do you think of the Arca-accredited Investor Bitcoin Trust? Let us know your thoughts on this topic in the comments section below.
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