The industry-leading firms have signed a Letter of Intent (LOI) to enter into an all-equity deal.

LOS ANGELES and MIAMI, Nov. 13, 2024 /PRNewswire/ -- Arca and BlockTower announced today that the parties have entered into an LOI for the firms to merge, creating a leader in crypto asset management. As part of the proposed transaction, BlockTower and Arca's business units would shift under a unified brand, with the exception of BlockTower Venture Capital, which will continue to operate independently.

"We expect to see ongoing consolidation, the emergence of new investment vehicles, and unique investment opportunities that differ from anything currently available in finance," says Jeff Dorman, CFA, Co-Founder and Chief Investment Officer at Arca. "Ari and I share a common background as experienced Wall Street professionals and have built and managed funds over the past seven years. Additionally, BlockTower's team complements Arca's skillset, which will be essential to navigate and capitalize on these new opportunities effectively."

"Competing in the maturing digital assets space and serving our investors requires a constant fight for top talent. By merging with Arca, we're excited to create a stronger investment team immediately," adds Ari Paul, Co-Founder and Chief Investment Officer at BlockTower. "Arca is an excellent match for BlockTower because we share similar investment principles, values, and long-term vision for successful asset management in the digital assets space. Our alignment includes a commitment to operational excellence, a foremost emphasis on our fiduciary role and the duties accompanying it, and setting a high ethical bar in treating all stakeholders."

Both firms have endeavored to create products to capture the evolving crypto opportunity set and to comply with regulatory standards. BlockTower and Arca each have entities that are registered investment advisers subject to SEC regulation.

"Investors have been clamoring for regulated digital assets investment offerings for years," says Rayne Steinberg, CEO at Arca. "By uniting our teams, we believe we will possess the resources and expertise to effectively manage our current product offerings and broaden our investment options, enabling investors worldwide to access digital assets through institutional-caliber products."

About Arca
Founded in 2018, Arca is a leading financial institution in the digital asset space. The Los Angeles-based company consists of Arca Investments, its asset management arm, and Arca Labs, its innovation division. The firm's overall mission is to develop financial products that allow institutional investors to transition seamlessly into a new digitally-powered economy.

About BlockTower Capital
BlockTower is an institutional investment management firm focused on cryptocurrency and blockchain technology, managing strategies across public and private markets, including liquid trading, venture investing, credit underwriting, and co-invest opportunities. BlockTower was founded in 2017 by former executives of Goldman Sachs and The University of Chicago Endowment. The firm has offices in Miami and New York.

Disclosures
This communication is in no way a solicitation or an offer to sell securities or investment advisory services. Registration as an investment adviser with the U.S. Securities and Exchange Commission does not imply a certain level of skill or training.

SOURCE Arca; BlockTower