Crypto companies Arca and BlockTower merge as institutional interests in digital assets
Key receivers
The integration of Arca and BlockTower aims to provide a strong institutional digital asset among the crypto markets. Industry developments, including record-breaking Bitcoin ETFs, highlight the growing array of compliant crypto investment options.
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Amidst a surge in crypto markets following Donald Trump's primary election win, the managers of Arca and Blocktower have agreed to merge in a comprehensive deal.
The firms have signed a letter of intent to unify under one brand with the aim of strengthening their institutional investment offering in digital assets.
“With continued consolidation, we expect to see the emergence of new investment vehicles and unique investment opportunities unlike anything currently available in finance,” said Jeff Dorman, co-founder and chief investment officer at Arca.
Both firms are registered investment advisers under SEC regulation.
The merger combines Arca's Los Angeles-based operations with Blocktower's Miami and New York presence, established in 2018 by former Goldman Sachs and Chicago endowment executives.
“Competing in the mature digital assets space and serving our investors requires a constant battle for top talent. We are excited to immediately create a strong investment team by merging with Arca,” said Ari Paul, Co-Founder and Chief Investment Officer at Blocktower.
The crypto industry has seen significant developments in recent months, including the performance of the Bitcoin spot ETF.
For example, BlackRock's iShares Bitcoin ETF hit $40 billion in assets in 211 days, ranking in the top 1% of ETFs by volume.
Rein Steinberg, CEO of Arca, commented on the merger's potential to meet the demand of institutional investors for a regulated supply of digital assets.
Steinberg believes the merger will provide expanded resources and expertise, allowing the company to expand investment products and meet growing demand for institutional-level, SEC-regulated options in the crypto space.
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