Arca US Treasury Fund has just started selling shares of an SEC approved Ethereum based fund.
The Ethereum community is definitely excited about the news, but some are wondering why it's not gaining momentum as a major story.
Ethereum enthusiast Alex Fisher noted the importance of the news.
Huge #Ethereum news not many people are talking about yet. NYSE Arca has launched an SEC registered bond fund that uses PUBLIC Ethereum. Shares are represented by ERC-1404 tokens.
Read all about it in official documents filed on SEC’s EDGAR website.https: //t.co/iLRqV7IJbf pic.twitter.com/cQJER3OA5f
– Alex.eth (@AlexanderFisher) July 6, 2020
Arca, the Los Angeles-based investment management firm, received its "Notice of effectiveness" July 6.
The fundamentals were detailed in an SEC statement.
"Shares of the Fund (" ArCoins "or" Shares ") can be transferred in peer-to-peer transactions on Ethereum, a public, distributed, open book that is secured by crypto (called" blockchain "). Ethereum records transactions between two parties in a verifiable and permanent way, what is known as "immutability". There are no share certificates, and because the shares can be transferred in peer-to-peer transactions using Ethereum technology, the shares are characterized here as “digital securities”. For more information, including the costs and risks of transacting on Ethereum, see "Peer-to-Peer Transactions," "About Digital Securities" and "Risks of Digital Securities."
Arca CEO Rayne Steinberg believes the move is a leap forward for the cryptocurrency sector.
"Our announcement today is an innovative and transformative step toward unifying traditional finance with investing in digital assets as this new category of regulated digital investment products is made available to investors."
Jerald David, President of Arca Capital Management expanded on why this step is so important to cryptocurrency investors.
"It is the first time that the blockchain will be integrated into a SEC registered fund," said David.
He also commented on the importance of custody features that will help newcomers to cryptocurrencies. He said the fund will offer services to prevent mistakes like loss of private keys and also help protect against fraudulent actors. The goal, he says, is to provide a service where "There is no need for a financial intermediary like a broker since investors can buy ArCoin directly."
If successful, Arca's ArCoin can become a widely used financial tool and investment vehicle.