Ark, an aspiring digital asset manager, has raised $ 10 million in Series A funding to launch the next phase of its business strategy. one that could bridge the gap between traditional financial and cryptocurrencies.
In a press release on Wednesday, Arca said the funding round was led by venture capital firm RRE Ventures, with key contributions from Alex Tisch, president of Loews Hotels Co, and a “coalition of funders led by Littlebanc Advisors.”
Arca says it will use the funds to improve its infrastructure and digital service offering. as well as keeping up to date with all legal and regulatory requirements in the industry.
Rayne Steinberg, Arca CEO told Cointelegraph that 2020 will be a turning point for cryptocurrencies. While this is largely due to Bitcoin, the company has found that “this initial awareness translates into interest in many other aspects of digital assets.”
When asked what the biggest obstacle to adopting digital assets is, Steinberg noted the “confused and broken narrative” of cryptocurrency. He explained:
“Discerning investors need to understand what they are investing in before investing. Hence the standardization of education and coherence [en] The message is things that have the same meaning as the real products. “
Steinberg says Series A investors have recognized that there is a large addressable market for crypto asset management and identified Arca’s potential to fill that void.
“Our investors recognized Arca’s plan to become the leading branded digital asset manager as an idea with enormous potential.” said.
These views were repeated in the press release. James Robinson, Founder and CEO of RRE Ventures, He said his decision to support Arca was based on his extensive experience with the company’s management team:
“We have worked with members of the senior Arca team for the past two decades as they revolutionized asset management and have given us great confidence that they can do it again with future evolutionary products.”
Arca was founded in 2018 and offers a range of investment products for traditional investors looking for a way to take advantage of cryptocurrencies. The company provides actively managed hedge funds and treasury management services for cryptocurrencies.
Digital asset management is a growing niche in the cryptocurrency industry Companies such as Bitwise and Grayscale are seeing capital inflows from new investors seeking direct exposure to this asset class.