Digital Asset Manager Arca Closes NFT Fund at $50 Million Cap

Arca, a compliant digital asset manager, has announced that it has closed its NFT fund, raising $50 million. The fund was said to be oversubscribed and access was limited to existing Arca LPs.

In a release, Arca said the NFT fund joins a growing number of venture funds targeting the digital asset ecosystem.

In October, Arca launched the Endeavor Fund at a vehicle that targets innovative founders in the crypto sector. There are now four funds that include its initial Digital Assets Fund and Digital Yield Fund.

The Arca NFT Fund purchases actual NFTs. Arca states that many NFTs generate immediate cash flow and yields that accrue directly to the holder. Arca will be focused on digital property, in-game assets, passive income generators, art/collectibles, DeFi integrated NFTs, utility, and reward-based NFTs, AI NFTs, identity tokens and royalty streams. The Fund will also focus on investing in assets that underpin the ecosystem.

Arca said that Sasha Fleyshman will serve as Portfolio Manager with oversight from CIO Jeff Dorman.

Fleyshman said that the development of the NFT market in the past year has been transformative:

“From collectibles to gaming, there is an exciting and natural entry point for many individuals in the NFT ecosystem: for creators via monetization of product in a global market, for users via play-to-earn mechanisms and value accrual, and for projects via fundraising mechanisms of assets to capitalize the growth of the project. We are energized by the rapid pace and maturity of this newest blockchain technology.”

Dorman added that they continue to identify first-mover opportunities for their investors:

The Arca NFT Fund is the latest example of this evolution. The timing is right for our Fund and we have had an influx of investors wondering about NFTs and how they can build a diverse portfolio that takes advantage of the myriad investment opportunities now represented in NFT form.”