Arca and BlockTower Intend to Merge, Unlocking Synergies and Growth Opportunities

The industry-leading firms have signed a Letter of Intent (LOI) to enter into an all-equity deal.

November 13, 2024 | Los Angeles, California and Miami, Florida

Arca and BlockTower announced today that the parties have entered into an LOI for the firms to merge, creating a leader in crypto asset management. As part of the proposed transaction, BlockTower and Arca’s business units would shift under a unified brand, with the exception of BlockTower Venture Capital, which will continue to operate independently.

“We expect to see ongoing consolidation, the emergence of new investment vehicles, and unique investment opportunities that differ from anything currently available in finance,” says Jeff Dorman, CFA, Co-Founder and Chief Investment Officer at Arca. “Ari and I share a common background as experienced Wall Street professionals and have built and managed funds over the past seven years. Additionally, BlockTower’s team complements Arca’s skillset, which will be essential to navigate and capitalize on these new opportunities effectively.”

“Competing in the maturing digital assets space and serving our investors requires a constant fight for top talent. By merging with Arca, we’re excited to create a stronger investment team immediately,” adds Ari Paul, Co-Founder and Chief Investment Officer at BlockTower. “Arca is an excellent match for BlockTower because we share similar investment principles, values, and long-term vision for successful asset management in the digital assets space. Our alignment includes a commitment to operational excellence, a foremost emphasis on our fiduciary role and the duties accompanying it, and setting a high ethical bar in treating all stakeholders.”

Both firms have endeavored to create products to capture the evolving crypto opportunity set and to comply with regulatory standards. BlockTower and Arca each have entities that are registered investment advisers subject to SEC regulation.

“Investors have been clamoring for regulated digital assets investment offerings for years,” says Rayne Steinberg, CEO at Arca. “By uniting our teams, we believe we will possess the resources and expertise to effectively manage our current product offerings and broaden our investment options, enabling investors worldwide to access digital assets through institutional-caliber products.”

About Arca

Founded in 2018, Arca is a leading financial institution in the digital asset space. The Los Angeles-based company consists of Arca Investments, its asset management arm, and Arca Labs, its innovation division. The firm’s overall mission is to develop financial products that allow institutional investors to transition seamlessly into a new digitally-powered economy.

About BlockTower Capital

BlockTower is an institutional investment management firm focused on cryptocurrency and blockchain technology, managing strategies across public and private markets, including liquid trading, venture investing, credit underwriting, and co-invest opportunities. BlockTower was founded in 2017 by former executives of Goldman Sachs and The University of Chicago Endowment. The firm has offices in Miami and New York.

PRESS CONTACTS

Arca

Sumana Maitra
sumana@ar.ca

BlockTower

David Burke

david@blocktower.com

Disclosures

This communication is in no way a solicitation or an offer to sell securities or investment advisory services. Registration as an investment adviser with the U.S. Securities and Exchange Commission does not imply a certain level of skill or training.

To learn more or talk to us about investing in digital assets and cryptocurrency

call us now at (424) 400-7444.

An investor should carefully consider the investment objectives, risks, charges, and expenses of the Arca U.S. Treasury Fund before investing. This and other information is available in the Fund’s prospectus, which should be reviewed carefully prior to investing. To obtain a prospectus, please call 1-800-445-3148.

An investment in the Fund involves risk including loss of principal. An investment in the Fund is suitable only for investors who can bear the risks associated with limited liquidity in the shares and the uncertainty of emerging technologies, and should be viewed as a long-term investment.

Other risks specifically associated with the Arca U.S. Treasury Fund are detailed in the prospectus and include no history of operations risk, conflict of interest risk, interval fund risk, no minimum amount of proceeds risk, fund closure risk, liquidity risk, tax related risks, credit and non-payment risk, interest rate risk, portfolio management risk, market risk, call risk, valuation risk and issuer risk.

The Arca U.S. Treasury Fund will be one of the first registered funds to offer digital securities and there are additional risks associated with this feature of the fund, including regulatory risk, liquidity risk, emerging technology risk, operational and technology risk, and risks specifically associated with the Ethereum blockchain. There is the risk that management may be unable to successfully use blockchain technology to validate ownership and transfer ArCoin.

Arca Capital Management, LLC “Arca” serves as adviser to the Arca US Treasury Fund, distributed by UMB Distribution Services, Member FINRA/SIPC. Arca and UMB are not affiliated.

Disclaimer: This commentary is provided as general information only and is in no way intended as investment advice, investment research, legal advice, tax advice, a research report, or a recommendation. Any decision to invest or take any other action with respect to any investments discussed in this commentary may involve risks not discussed, and therefore, such decisions should not be based solely on the information contained in this document. Please consult your own financial/legal/tax professional.

Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed are those of the author, and are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Arca disclaims any obligation to update or revise any statements or views expressed herein. Past performance is not a guarantee of future results and there can be no assurance that any future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which is believed to be accurate, but has not been independently verified. Arca and/or certain of its affiliates and/or clients may now, or in the future, hold a financial interest in investments that are the same as or substantially similar to the investments discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and Arca and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities, or a solicitation to provide investment advisory services.