Arca, an emerging digital asset manager, has raised $ 10 million in Series A funding to kick-start the next phase of its business strategy – one that could bridge the gap between traditional finance and cryptocurrencies.
In a press release from Wednesday, Arca said The funding round was led by venture capital firm RRE Ventures, with significant contributions from Alex Tisch, president of Loews Hotels & Co, and a “coalition of funders led by Littlebanc Advisors”.
Arca says it will use the funding to improve its infrastructure and digital service offering, as well as to stay on top of all legal and regulatory requirements in the industry.
Rayne Steinberg, Arca’s CEO, told Cointelegraph that 2020 was a turning point year for cryptocurrency. Although that is largely due to Bitcoin (BTC), the company has seen that “this initial awareness translated into interest in many other aspects of digital assets.”
When asked about the biggest barrier to digital asset adoption, Steinberg identified the “confusing and fragmented narrative” surrounding cryptocurrency. He explains:
“Sophisticated investors need to understand what they are investing in before investing. So standardization and consistency in education [in] message are things that are just as important as the actual products. “
Steinberg said Series A investors have recognized that there is 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 brand’s leading asset manager in digital assets as an idea with tremendous potential,” he said.
Those views were echoed in the press release. James Robinson, founder and CEO of RRE Ventures, said his decision to support Arca stems from his many years of experience with the company’s management team:
“We have worked with members of Arca’s senior team for the past two decades, who have revolutionized asset management, giving us confidence that they can do it again with future evolutionary products.”
Founded in 2018, Arca offers a range of investment products marketed for traditional investors looking for a way to tap into cryptocurrencies. The company offers actively managed hedge funds and treasury management services focused on crypto.
Digital asset management is a growing niche within the cryptocurrency industry, with companies such as Bitwise and Grayscale an inflow of capital from new investors looking for direct exposure to the asset class.