The Arca US Treasury Fund just began selling shares of an Ethereum-based fund that is approved by the SEC.
The Ethereum community is definitely excited about the news, but some are wondering why itâs not picking up steam as a major story.
An Ethereum enthusiast Alex Fisher noted the importance of the news.
Arca, the Los Angeles based investment management firm received their âNotice of Effectivenessâ on July 6th.
The fundamentals were spelled out in a statement by the SEC.
âThe Fundâs shares (âArCoinsâ or âsharesâ) can be transferred in peer-to-peer transactions on Ethereum, an open, public, distributed ledger that is secured using cryptography (referred to as a âblockchainâ). Ethereum records transactions between two parties in a verifiable and permanent way, referred to as âimmutability.â There are no share certificates, and because the shares can be transferred in peer-to-peer transactions using Ethereumâs technology, the shares are characterized herein as âdigital securities.â For more information, including the costs and risks of effecting transactions on Ethereum, see âPeer-to-Peer Transactions,â âAbout the Digital Securitiesâ and âRisks of Digital Securities.â
Arca CEO Rayne Steinberg thinks the move is a leap forward for the cryptocurrency sector.
âOur announcement today is a ground-breaking and transformative step toward the unification of traditional finance with digital asset investing as this new category of regulated, digital investment products is made available to investors.â
Jerald David, president of Arca Capital Management expanded into the reason why this step is so important for cryptocurrency investors.
âIt is the first time that the blockchain will be integrated into an SEC-registered fundâs framework,â David noted.
He also commented on the importance of custodial features that will aid crypto newcomers. He said the fund will offer services to prevent mistakes such as losing oneâs private keys and the fund will also help to protect from fraudulent actors. The goal, he says is to provide a service where there is âno need for a financial intermediary like a broker since investors can purchase ArCoin directly.â
If successful, Arca’s ArCoin can become a widely used financial tool and investment vehicle.
