Find Answers to Your Questions
Non-fungible tokens, or NFTs, are unique digital assets on the blockchain that enable the creation, monetization, and trading of traditionally illiquid valuables such as artwork, real estate, and music. NFTs can be considered virtual certificates of authenticity. For more information, read What Is a Non-Fungible Token (NFT)?
The Bored Ape Yacht Club (BAYC), a collection of NFTs that sits on the Ethereum blockchain, was one of the most well-known NFT projects of 2021, experiencing more than $1 billion of trading volume since its inception. Similarly, CryptoPunks are popular NFT collectibles of pixelated avatars. For more information, read Nonfungible Tokens: A New Frontier.
Digital assets, such as cryptocurrencies and asset-backed tokens, are interchangeable because their financial worth is the same for all holders. For example, like the U.S. Dollar, one Bitcoin equals another Bitcoin. NFTs are singular and unique, which means that each NFT is valued independently of other NFTs. For more information, view our Digital Asset Taxonomy.
An NFT can be likened to a wrapper or a vessel. The wrapper represents the investment structure, but the value of an NFT is defined by the asset contained within the wrapper. Given that NFTs are unique items, their financial worth is determined by perceived, intrinsic, and functional valuation. For more information, view our webinar, NFTs for Professional Investors.
A JPEG is a format for virtual image files that can be infinitely copied and shared on the internet. Blockchain enables content authentication using smart contracts and tracks its circulation for continuous remittance to the original creator. For more information, read What Are NFTs?
The gaming industry has integrated competition and consumable goods to attract and retain players. One example is Fortnite, where players can gain a competitive advantage by using microtransactions or digital purchases that unlock specific gaming features. Blockchain-based gaming has enabled the creation of digital, non-fungible, in-game assets that can be collected or traded. Players will therefore have opportunities to own unique assets versus items that are the same for all participants. For more information, read In-Game NFTs You Should Know About.
NFTs provide a means of monetizing traditionally illiquid assets across all industries, such as musical albums, paintings, trading cards, and property. Tokenizing these assets helps generate adjacent marketplaces that create or increase liquidity and overall value. NFTs provide decentralized ownership and income opportunities while invigorating a wide variety of businesses. For more information, read Seven Industries Rife With NFT Investing Opportunities.
Music NFTs have been rising in popularity, enabling artists to monetize their work and receive direct support from fans without interference from music labels. For example, Grimes released a 2021 NFT collection of original art paired with her songs, one of which sold for almost $400,000. NFTs have also been used in the sports industry, providing digital sports trading cards, expanding brand partnerships, and deepening connections between famous players and their fans. For more information, read Top 7 NFT Use Cases.
NFTs are minted on a blockchain; thus, they are transparent and immutable. Using smart contracts, NFTs can be programmed to provide payment back to the creator when they are traded or consumed. For more information, read Next-Generation Securitization: NFTs, Tokenization, and the Monetization of “Things.”
NFTs may be used for events and ticketing, which could merge concert admissions with artwork, memorabilia, and other VIP privileges, even allowing audience members to become concert shareholders. Another potential use case lies in the Metaverse, where participants could use NFTs to purchase sections of virtual land, stimulate a virtual economy, enter private parties, and upgrade their avatars. Further, NFTs provide opportunities to digitize certificates and other forms of identification, such as college diplomas, social security numbers, and account logins. For other future use cases, see 15 NFT Use Cases That Could Go Mainstream.
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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.
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