SEC Green Lights Arca’s Ethereum-Based Investment Fund
Arca, an institutional asset management company, has been approved by the US Securities and Exchange Commission (SEC) for the launch a blockchain-transferred fund.
The fund, called Arca US Treasury Fund, was announced Monday. It is an SEC-registered closed end in nature and is now open for investors. The digital securities, ArCoin, can be traded on top of Ethereum blockchain.
Rayne Steinberg (chief executive officer at Arca) stated that today’s announcement was a groundbreaking and transformative step towards the unification traditional finance with digital asset investment as this new category is made available for investors.
The fund invests 80 percent of its portfolio assets into interest-bearing, US treasury bond and notes.
Blockchain is the first investment fund that has been registered
It is also the first fund to have a representation using cryptographic tokens, according to the Investment Company Act of 40. This is the culmination of 20 months of effort since Arca had been pushing for some form of the fund’s approval.
It will be a registered fund and offer daily net-asset value reporting, bankruptcy protections, periodic auditored financial statements, as well as assets held in a trust administered by an independent board.
Arca Labs was responsible for the development of ArCoin. ArCoin is based on Ethereum blockchain and follows the ERC-1404 standard. Arca might have been able to get approval for the protocol, as ERC-1404 does not allow token holders to send tokens to whitelisted addresses.
The digital assets industry is rapidly evolving and growing. Arca Labs is being established to provide digital investment products with regulatory oversight and transparency that investors are looking for in traditional investment holdings.