In a news wire PR, Arca announces the launch of its Arca Treasury Fund. Arca’s product is the pioneer Ethereum SEC crypto fund registered with the United States’ Securities Commission. Ethereum (ETH) blockchain, which has the most blockchain activity, will also provide the platform to launch Arca’s Arcoin.
What is Arcoin?
The Arca fund totally converts the share or ownership of security into a digital token. Arcoin is the token that represents your ownership of Arca’s products. You may think, Arcoin may be a normal ERC-20 token just like every other token in the Ethereum blokchain. But no, Arcoin is a ERC-1404 token, which is a special standard.
So, ERC-1404 makes it kind of a permissioned blockchain that restricts transactions and limits access to authorized addresses only. Only because of this, Arca receives the SEC stamp of approval. Finally, monitoring of transactions happens always with the help of an administrative authority all the time.
How does Arca’s Treasury fund invest?
The Arca’s Treasury Fund actually invests 80 percent of its portfolio into really short term Treasury securities from the US Government. It helps them not take too many risks at the beginning and provide interest back to the customers regularly. This will set a path to combine the SEC regulatory guidelines to a (NFO like) closed end fund along with the advances of block chain tech. As a result, one ArCoin represents one share in the Arca Fund.
In addition, Arca’s fund regularly updates its shareholders with NAV changes and financial statements that may or may not be following GAAP methodology.
How to make investment into ArCoin?
In order to invest, you need to register with Arca website. You are free to invest into the fund as of now. Remember, you need to shell out at least thousand bucks since that is the minimum investment. Additionally, you need to invest in thousands, if you want to spend more a thousand dollars.
According to the press release, share holders have to register themselves with the transfer agent of Arca. Additionally, make yourself ready with necessary documents to complete Know Your Customer and Anti Money Laundering processes. Since, Arcoin is a security, it pays a regular interest. You will get in your bank account once in a quarter.
Finally, I am really happy with the developments in the Crypto space. This Ethereum SEC Crypto fund approval is a step towards legitimization of the Cryptocurrency industry. It allows us to spread the news and bring in more patrons to adopt and benefit.