Digital asset manager, Arca, has announced that it has secured a $10 million investment fund to expand its business and kick-start the next phase of its business strategy.
The company plans to bridge the gap between cryptocurrencies and traditional finance and use the Series A funding to achieve that goal.
Improving Digital Services Infrastructure
Arca stated in a press release that the funding round was led by RRE Ventures, a venture capital firm. Important contributors to the funding include Loews Hotels & Co, Alex Tisch, and other financiers headed by Littlebanc Advisors.
Arca wants to use the funds to improve the digital service and infrastructure offerings. The funding will also help the company stay within the regulatory and legal confines of the industry.
Chief executive officer of Arca, Rayne Steinberg, said last year was a watershed year for cryptocurrencies. But Bitcoin was the major reason for the high bullish trend for the crypto sector. The company said the initial rise of Bitcoin led to many other aspects of the digital assets, he reiterated.
He also gave insight into the main challenges of cryptocurrency adoption. Steinberg blamed the lack of speedy cryptocurrency adoption on the “confusing and fractured narrative” surrounding digital assets.
He further explained that high investors from the mainstream need to know what they are investing in before deciding. According to him, consistency and standardization when it comes to crypto education should be taken seriously if the crypto community wants to see the level of adoption it craves.
RRE Ventures Founder to Join Acar’s Board
Founder of RRE Ventures James Robinson will be joining the Arca advisory board to contribute to Acar’s product development and distribution efforts.
Steinberg stated that Series A funding fundraisers understand that crypto asset management has a huge potential and an untapped addressable market. He said they decided to invest with Arca because they have strong confidence in the company to fill the void in the industry.
The investment funds showed that the investors have aligned goals with the firm and trust the company to deliver. Steinberg reiterated,
“Our investors recognized Arca’s plan to become the premier branded asset manager in digital assets.”
He echoed these views in the press release. On a similar note, Robinson stated that he has an extensive relationship with Arca and its management team. He added that the long-standing relationship is the main reason he decided to support the project’s company.
He said that RRE Ventures have worked with the management team of Arca for the past 20 years, as they are the pioneers of the revolutionized asset management business. With the team’s level of exposure and experience, Robinson said they trust in the team’s ability to steer future products’ wheels.
Arca offers a wide range of investment products to traditional investors who want to get involved in cryptocurrencies. It offers treasury management and actively managed hedge funds dedicated to cryptocurrency.
The firm will be competing with already established digital asset management firms like Grayscale and Bitwise.