Arca, an aspiring digital asset manager, has raised $ 10 million in Series A funding to launch the next phase of its business strategy – one that could bridge the gap between traditional financial and cryptocurrencies.
In a press release on Wednesday, Arca said the funding round was led by venture capital firm RRE Ventures, with key contributions from Alex Tisch, President of Loews Hotels & Co, and a “coalition of financiers led by Littlebanc Advisors.”
Arca sai will use the funds to improve its infrastructure and digital service offering and to keep abreast of all legal and regulatory requirements in the industry.
Rayne Steinberg, CEO of Arca, told Cointelegraph that 2020 will be a turning point for cryptocurrency. While this is due in large part to Bitcoin (BTC), the company has found that “this initial awareness translates into an interest in the many other aspects of digital assets.”
When asked about the biggest obstacle to adopting digital assets, Steinberg identified the “confusing and broken narrative” surrounding cryptocurrency. He explains:
“Discerning investors need to understand what they are investing in before investing. So educational standardization and consistency [in] Messages are things that are equally important for the actual products. “
Steinberg said Series A investors recognized that there was a large addressable market for crypto asset management – and identified Arca’s potential to fill the void.
“Our investors recognized Arca’s plan to become the premier branded digital asset manager as an idea with enormous potential,” he said.
These views were repeated in the press release. James Robinson, Founder and CEO of RRE Ventures, said his decision to support Arca was due to his extensive experience with the company’s management team:
“We have worked with members of the Arca senior team for the past two decades as they revolutionized asset management and have given us great confidence that they can do it again with future evolutionary products.”
Founded in 2018, Arca offers a range of investment products that are marketed to traditional investors looking for a way to enter cryptocurrencies. The company provides actively managed hedge funds and treasury management services for crypto.
Digital asset management is a growing niche in the cryptocurrency industry. Companies such as Bitwise and Grayscale are seeing capital inflows from new investors seeking direct exposure to the asset class.
