Arca’s newest hedge fund product closes ahead of its initial cap, paving the way for traditional financial institutions seeking to incorporate NFTs for portfolio diversity and investor benefit.
Los Angeles, CA - February 3, 2022 - Arca, an asset management firm focused on investing and innovating in digital assets, today announced the launch of the Arca NFT Fund, which was capped at $50M and only open to existing Arca LPs. In October, Arca debuted the Endeavor Fund, an early-stage, closed-end venture fund focused on investing in innovative founders across various segments of the digital asset ecosystem. The Arca NFT Fund joins Arca’s expanding suite of investment products increasing the total hedge fund product suite to four, including the flagship Digital Assets Fund and the Arca Digital Yield Fund, the first actively managed income fund in the digital assets space.
The Arca NFT Fund focuses on investing in the NFTs themselves, many of which have immediate cash flows and yields, and unique properties that accrue directly to the token holder. Arca will be focused on digital property, in-game assets, passive income generators, art/collectibles, DeFi integrated NFTs, utility and reward based NFTs, AI NFTs, identity tokens and royalty streams. The Fund will also focus on investing in the tokens underpinning the ecosystem, such as: gaming assets, infrastructure, metaverse related tokens and utility tokens that shape the fabric of the NFT economy.
Sasha Fleyshman will serve as Portfolio Manager with oversight from CIO Jeff Dorman.
Fleyshman’s focus is in identifying niche growth sectors within the digital assets ecosystem. He joined Arca at the firm’s inception in 2018 and he covers decentralized finance, NFTs, and sports/gaming. Additionally, he has a long history of investing personally in the space, including NFTs specifically.
“The developments in the NFT market over the past year have been transformative on multiple fronts,” said Fleyshman. “From collectibles to gaming, there is an exciting and natural entry point for many individuals in the NFT ecosystem: for creators via monetization of product in a global market, for users via play-to-earn mechanisms and value accrual, and for projects via fundraising mechanisms of assets to capitalize the growth of the project. We are energized by the rapid pace and maturity of this newest blockchain technology.”
Arca has created a standalone vehicle based on the lifecycle of the NFT ecosystem now that the ecosystem is mature enough for a fund, but in an area still early in its evolution and with much opportunity.
Jeff Dorman shared, “We continue to identify first mover opportunities for our investors as we tap into the wealth of knowledge we’ve secured over the past few years as we constantly adapt to the evolutionary growth of digital assets. The Arca NFT Fund is the latest example of this evolution. The timing is right for our Fund and we have had an influx of investors wondering about NFTs and how they can build a diverse portfolio that takes advantage of the myriad investment opportunities now represented in NFT form.”
Arca’s NFT Fund counts existing investments in Alethea, CXIP, Portals, Raremint and Recur.
To learn more, register for our NFT educational webinar, “NFTs for Portfolio Diversity and Investor Benefit” here: www.ar.ca/NFT.
Learn about Arca’s full product suite by visiting www.ar.ca.
About Arca Arca is an asset management firm investing and innovating in digital assets. Our mission is to offer asset management products that meet the operational, compliance, legal, and regulatory standards needed for sophisticated investors to gain exposure to digital assets. Arca’s product set includes actively managed hedge funds, passive vehicles, and a first-to-market blockchain transferred fund (“BTF”), developed by our innovation division, Arca Labs. Arca was the first registered fund to issue shares via the blockchain, which integrates blockchain’s peer-to-peer technology and instant settlement features with traditional investment vehicles. Arca’s founders and senior team members have worked in traditional finance and FinTech across many asset classes and are working to bring the best of traditional finance practices to digital assets to deliver the right product to the right investor at the right time. Learn more about Arca: https://ar.ca
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Disclaimer: This commentary is provided as general information only and is in no way intended as investment advice, investment research, a research report or a recommendation. Any decision to invest or take any other action with respect to the securities discussed in this commentary may involve risks not discussed herein and such decisions should not be based solely on the information contained in this document.