The institutional demand for the crypto market continues, whether directly or indirectly.

Recently I advanced Arca Investment Company, which manages a group of digital assets, filed with the US Securities and Exchange Commission (SEC) to create a Bitcoin Trust Fund.

Thus, the Arca Accredited Investor Bitcoin Trust became a competitor to the Grayscale Bitcoin Trust, which is managed by Grayscale, which is the largest institutional buyer of Bitcoin.

The Grayscale Bitcoin Trust owns an estimated 3% of the 21 million bitcoins that will be in circulation and holds $20 billion in assets under management at the end of 2020.

So far, Arca has raised $100,000 from investors, and made its first sale on February 16.

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The general benefit of these mutual funds, which almost track the price of bitcoin in movement, investors can add to their investment portfolios for indirect exposure to bitcoin by investing in it without actually buying or holding any bitcoin.

A complete guide and explanation of the “Grayscale Bitcoin Trust” or what stands for “GBTC”

The downside of trusts is that they charge an investment management fee, and stocks and funds can be traded at a premium compared to the actual asset.

Simply put, investors who trust bitcoin can expect to pay more for the purchase of a regulated investment product.

Additionally, buying shares of a Bitcoin product still comes with the same type of volatility as the underlying cryptocurrency.

However, investors will not have to worry about their private keys and may have more resources to protect profits from taxes.

Arca helps companies manage large amounts of cryptocurrency and offers hedge funds to investors who want to get involved in cryptocurrencies.

Arca’s latest fund is open only to accredited (wealthy) investors who can bring in at least $25,000 to enter.

Meanwhile, Grayscale requires a minimum investment of $50,000, with stockholders unable to sell for at least six months.

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While this lack of flexibility is inconvenient in the event that the bitcoin price drops, currently between $46,000 and $50,000, it also helps reduce the available supply of bitcoin in circulation, theoretically helping the price to stabilize or rise.

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