BTFs FAQ

Find Answers to Your Questions

What is a blockchain transferred fund (BTF)?

A blockchain transferred fund (BTF) is a pooled investment fund registered under the ‘40 Act that issues its shares on the blockchain. These shares represent ownership in the fund’s portfolio and are digital asset securities that can be issued, transferred, and redeemed via a blockchain. For more information, read Blockchain Transferred Funds (BTFs): The New Frontier for Investment Funds.

What are use cases for BTFs?

The BTF structure can benefit collateral management by reducing cross-collateralization costs and the time required to trade reserves using traditional trading platforms. BTFs can also make payments more efficient by enabling peer-to-peer interactions and can grant investors greater authority and earning power over their assets.

What is an example of a BTF?

The Arca U.S. Treasury Fund is the first BTF that invests 80% of its assets in U.S. Treasury bills, bonds, and notes. The Fund issues its shares as digital asset securities called ArCoin, which was approved by the SEC on July 6, 2020. For more information about the Arca U.S. Treasury Fund and ArCoin, visit the Arca Labs website and ArCoin FAQs.

Who can invest in BTFs?

Like mutual funds and ETFs, BTFs are available for retail and institutional investors.

What are the potential benefits of BTFs compared to traditional investment vehicles?

BTFs incorporate blockchain into the traditional pooled fund structure to combine transformative technology with regulatory compliance. In addition, Blockchain’s decentralized and distributed nature enables BTFs to potentially have greater accessibility, increased liquidity, faster settlement, asset ownership, and transparent history.

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This fund is an interval closed-end fund. 

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 1-888-526-1997.

Fund Risks 

You may not have access to the money you invest for an extended period of time. • You may not be able to sell your shares at the time or in the quantity of your choosing regardless of how the Fund performs. • Investors should understand that the Fund's shares are not currently listed on or available for trading through a national securities exchange or any other exchange, and a market for trading on an exchange may never be available to investors. Except for individually negotiated peer-to-peer transactions, there is currently no secondary market for ArCoins, and no such market is expected to develop. • Because you may not be able to sell your shares at the time or in the quantity of your choosing, you may not be able to reduce your exposure to the Fund in a market downturn. • An investment in the Fund may not be suitable for investors who may need the money they invested in a specified timeframe. • The amount of any distributions the Fund may pay is uncertain. There is no assurance that the Fund will maintain a particular level of distributions, nor is there any guarantee that the Fund will make distributions at any particular time. • Due to the emerging nature of blockchain use in securities transactions, the Fund anticipates that (other than monthly repurchase offers as described below) there will initially be limited to no liquidity in ArCoins due to low or no volume in peer-to-peer transactions. Investors should therefore initially expect greater price volatility in the secondary market than would be the case if the shares had greater liquidity. • The Fund will not invest, directly or indirectly, in digital assets, including digital securities. • Although shareholders can engage in peer-to-peer transactions using blockchain technology, the Transfer Agent will maintain the official record of the Fund's shareholders.

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