Rayne Steinberg, chief executive officer of Arca Funds (arcafunds.com), discusses the complex and constantly evolving digital marketplace, financial products, and ways that qualified investors can successfully navigate the vast sea of new currencies and platforms.
Steinberg is a seasoned securities structuring and risk management professional. He has played an instrumental role in many businesses, including his influential contributions as co-founder of WisdomTree. Steinberg was responsible for raising capital, building and overseeing the sales team that successfully raised $50 Billion in ETF AUM. Steinberg earned a Bachelor of Science degree from the University of Pennsylvania’s prestigious Wharton School of Business.
Steinberg discusses his early journey into the business, including his time as co-founder of WisdomTree. He explains the financial products and fee structures, and how high fee was a problem that made it difficult for industries to disrupt themselves. His interest in crypto was that it was an asset class for people to invest in, but it was also a novel wrapper in which to wrap many and various financial service products. Specifically speaking, ETFs are wrappers that are comprised of multiple securities representing an overall investment strategy.
Steinberg explains his company’s model and intentions. Arca Funds applies to sound, institutional-grade asset management processes to the future-forward crypto and blockchain-investing arena. Arca Funds’ primary focus is on stable regulation and security, compliance, as well as custody and risk management. Steinberg discusses how our current system has largely been centralized, with individuals giving their trust to authorities to maintain their transactions, etc. Thus, the new model of crypto represents a reconfiguration of that system, as its approach is one of decentralization. He gives an example of how in the new digital ecosystem, individuals are the custodians of their own passcodes, and so forth, placing a higher level of responsibility upon the individual. As Steinberg states, with the new freedom in the digital market comes new risks as well, and Arca Funds was designed specifically to help individuals bridge the gap between the old and new, to find their footing in these rapidly expanding digital markets. The Arca Funds platform allows for safe experimentation as users gain experience in the markets.
Steinberg outlines many of their products. Arca launched a series of quality funds designed to offer greater diversified and compliant exposure to the expanding crypto asset class. And down the road, they plan to develop unique tokenized products that will significantly disrupt and replace the aging landscape of centralized, expensive financial service products that are not easily converted into cash. And as there is the risk in the markets, Steinberg states that their platform is only available for high net worth individuals and qualified buyers, as is defined by regulators. He explains the intricate details of their various products’ structures, and who they would be attractive for, and why. And he details how Arca Funds is able to assist in the qualifying of asset products that come into the marketplace. From Bitcoin to Ethereum, regarding hedge funds, and so much more, Steinberg’s Arca Funds evaluates the many opportunities and provides real, sound information on them. And as the products are not just security products but are also technology products, Arca Funds’ team utilizes a thorough process to get to know the products, and the technology, as the digital market is quite complex for the average user. As such, Arca Funds’ returns typically better the averages.
The Arca team systematically and thoroughly combines their many decades of institutional asset management experience; a broad history of successful, relevant business creation; and the technical expertise to create real value for the individuals they service.