Arca and BlockTower merge to lead crypto asset management, expanding institutional access to regulated digital assets and new investment vehicles.
Arca and BlockTower have announced a merger, creating a new leader in the crypto asset management space. The firms have signed a Letter of Intent (LOI) to combine their operations. As a result, this will form a unified entity focused on digital assets. Under the deal, most of BlockTower’s business units will be integrated into Arca. On the other hand, BlockTower’s venture capital division will remain independent.
Co-founder and Chief Investment Officer at Arca Jeff Dorman is confident the merger will speed up the consolidation of the digital asset market. He sees the rise of new investment vehicles and opportunities that are not traditional finance.
Dorman also pointed out his shared background with Ari Paul, Co-Founder and CIO of BlockTower. They have extensive experience managing funds, especially in the Wall Street environment. Dorman believes BlockTower’s team complements Arca’s existing expertise, which will be key as they navigate the ever-changing crypto space.
Ari Paul echoed these thoughts, saying the merger would immediately strengthen the combined investment team. He said both firms share similar investment principles and long-term goals, making them a good fit. Paul also explained that the merger would ensure that high standards of operational excellence and ethics in managing investor interests are continued.
Arca and BlockTower Merge to Expand Institutional Access to Digital Assets
Arca and BlockTower have worked to develop products that will satisfy the ever-increasing need for digital assets while still abiding by regulatory standards. Both firms are regulated by SEC rules as registered investment advisers.
Arca CEO Rayne Steinberg said investors have long sought regulated investment offerings in digital assets. He believes the merger will make the new firm better meet that demand. The combined expertise will also expand their product offerings to help make digital assets more accessible to institutional investors worldwide, Steinberg noted.
The digital asset space is maturing, and increasing demand for regulated, institutional-grade products is increasing, making this merger opportune. Arca and BlockTower want to be the first to lead the quickly growing crypto asset management space.
