One of the biggest roadblocks in converting Latin American investors to concept of crypto, is education about the sector. Cryptocurrencies, which don’t have a physical existence like gold or cash, can be a difficult concept for investors to grasp. “Latin American investors are still very traditional,” she added. “They tell me they only invest in things that they can stand on, or things they can touch. We’re trying to change that mentality… we need to prove to them that these technologies actually work.”

Arca and BlockTower, two leading firms in digital asset management, announced their plans to merge in an all-equity deal. 

Per a joint press release, the merger will create a combined entity that delivers regulated, institutional-grade crypto investment products to a growing market. The two firms have signed a Letter of Intent and plan to consolidate their operations under one brand. 

BlockTower’s venture capital unit will remain independent.

The merger addresses the increasing demand for digital assets within a regulated investment environment. Rayne Steinberg, CEO at Arca, noted via the press release that uniting the firms will enable them to provide products that adhere to regulatory standards, a priority for investors seeking more secure ways to access digital assets.

Financial institutions are embracing crypto

Digital asset management involves overseeing investments in cryptocurrencies and blockchain-related assets, offering opportunities for both individual and institutional investors to explore this emerging sector.

Companies like Arca and BlockTower offer specialized funds in this area, managed by people with solid Wall Street backgrounds.

By teaming up and pooling their resources, these firms aim to create stronger products and navigate the ever-evolving world of crypto with confidence.

“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.” 

Ari Paul, Co-Founder and Chief Investment Officer at BlockTower

Once the merger is finalized, the unified firm will focus on delivering investment options that blend the growth potential of digital assets with the security of institutional-grade standards.

Native goes live with $2.6 million of seed funding led by Nexus Mutual, and the two firms are offering $20 million on-chain cover per risk, according to a press release on Tuesday. Nexus Mutual currently has a capital pool of about $200 million, mostly denominated in ETH, the token of the Ethereum blockchain, meaning the mutual will be able to write multiple coverage lines per risk from day one, Nexus Mutual said.