Arca Labs, the innovation division of digital asset management firm Arca, has published a white paper, “Blockchain Transferred Funds (BTFs): The New Frontier for Investment Funds,” which introduces a new fund structure that incorporates blockchain technology. Arca believes blockchain will revolutionise investment funds’ role in the financial system.
The blockchain transferred fund (BTF) is a pooled investment vehicle registered under the ‘40 Act that issues its shares on the blockchain. Currently, numerous steps and intermediaries are involved in buying or selling a fund, limiting funds’ purpose solely to investing. Integrating blockchain would allow for peer-to-peer transference and the removal of intermediaries, leading to almost immediate benefits.