Arca and BlockTower announced on Nov. 13 that they have signed a letter of intent (LOI) to merge their operations, aiming to form a significant force in the field of crypto asset management. According to the release, the combined firm will consolidate its business units under a single brand, while BlockTower Venture Capital will continue operating independently.
Arca, founded in 2018, operates out of Los Angeles and focuses on bridging institutional finance with the digital economy through its asset management arm, Arca Investments, and its innovation-focused division, Arca Labs. As for BlockTower, which was established in 2017 by former Goldman Sachs and University of Chicago Endowment executives, it also specializes in crypto and blockchain investments; the firm manages strategies across public and private markets, including liquid trading, venture capital, and credit underwriting, with offices in Miami and New York.
Jeff Dorman, Co-Founder and Chief Investment Officer at Arca, noted that the industry is likely to see further consolidation and the introduction of novel investment opportunities. He emphasized that his firm and BlockTower share a common background rooted in traditional finance and have developed expertise in managing funds over the past seven years. Dorman added that BlockTower’s capabilities complement Arca’s strengths, which he believes will be critical for capturing emerging opportunities in the digital assets sector.
Ari Paul, Co-Founder and Chief Investment Officer of BlockTower, said that merging with Arca would bolster their access to top talent, which is essential for success in the maturing digital assets landscape. He stressed that both firms share similar investment philosophies, values, and long-term strategic goals. According to Paul, this alignment includes a shared commitment to operational excellence, a strong fiduciary focus, and high ethical standards in dealing with all stakeholders.
The release notes that both companies have been proactive in developing products that align with regulatory standards. They emphasize that each firm has entities registered as investment advisers, which are regulated by the U.S. Securities and Exchange Commission (SEC).
Rayne Steinberg, CEO at Arca, remarked that the partnership would enhance their ability to meet the growing demand for regulated digital asset investment options. By combining resources, the two firms expect to expand their range of institutional-grade offerings, making digital assets more accessible to investors globally.
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