Arca Chief Investment Officer Jeff Dorman said the digital investment company has sold all of its Circle shares following the stablecoin company’s recent listing on the New York Stock Exchange.
The update followed a scathing open letter published by Dorman on social media on June 5, criticizing Circle for giving the investment firm a “throwaway” allocation in Circle’s initial public offering (IPO).
According to Dorman, Arca submitted an order for $10 million in Circle shares in April 2025 and only received a $135,000 allocation despite being a long-time supporter and one of the earliest investors to submit a bid. The executive wrote in a now-deleted letter:
“We pinged you separately two months ago indicating our order, and you thanked us for the support. If you were going to f[***] us at the end, the least you could have done was tell us two months ago so we didn’t waste our analysts’ and ops teams’ time on a deal that you had no intention of allocating shares to us.”
“Arca is closing all of our accounts with Circle and will tell every single dealer we work with that we will no longer accept USDC,” Dorman continued.
Cointelegraph reached out to Circle for comment on the letter but hadn’t received a response by the time of publication.
Circle’s public listing is a significant development in the crypto industry as the issuer of the world’s second-largest stablecoin, Circle-USD (USDC), with a total market capitalization of over $61 billion, now has access to the world’s deepest capital market.
Circle lists on the NYSE to trading frenzy
Circle began trading on the NYSE on June 5 under the ticker CRCL, following an IPO that raised $1.05 billion.
The company’s shares surged by 167% on its debut, closing out the trading day at $82.
The stock continued the rally on June 6 and is currently trading hands around $115 per share during intraday hours.
Quick Summary of the News:
- Arca CIO Jeff Dorman publicly criticizes Circle for a small IPO share allocation.
- Arca sold all of its Circle shares as a result.
- Arca is reportedly closing all accounts with Circle and refusing USDC.
- Circle recently went public on the NYSE under the ticker CRCL.
- CRCL stock price surged significantly after its IPO.
Why It Matters:
While seemingly a dispute between two companies, this event highlights the importance of relationships and perceived fairness within the crypto industry, especially as it matures and interacts more with traditional finance. Circle’s IPO is a landmark event, but negative sentiment from established players like Arca can impact investor confidence and the broader perception of USDC.
Market Impact:
It is unlikely Arca’s actions alone will have any material negative impact on Circle’s stock price or USDC’s stability due to the size of each company. However, the news could impact investor sentiment, here’s a comparison:
| Metric | USDC | Tether (USDT) |
|---|---|---|
| Market Cap | $61 Billion (approx.) | $112 Billion (approx.) |
| Trading Volume (24h) | $6 Billion (approx.) | $40 Billion (approx.) |
A dip in the trading volume of USDC following the news cycle, while not necessarily indicative of a long-term trend, would signal decreased confidence.
Expert Take or Personal Insight:
This situation reveals a potential culture clash between traditional finance practices and the expectations within the crypto space. While IPO allocations are often strategic, Arca’s reaction underscores the importance of transparency and communication, especially with early supporters. Circle’s silence following the public criticism is also notable. A swift, public response addressing the concerns might have mitigated the fallout.
Actionable Insight:
Traders and investors should monitor USDC’s trading volume and market capitalization in the coming days. Any significant and sustained decline could indicate a broader loss of confidence. Watch for any official statements from Circle addressing the situation. Keep an eye on social media sentiment surrounding USDC and CRCL.
Conclusion:
The Arca-Circle situation is a reminder that even in the rapidly evolving crypto landscape, relationships and reputation matter. While the long-term impact on Circle and USDC remains to be seen, this event serves as a valuable lesson in communication, transparency, and the importance of nurturing relationships within the crypto ecosystem. The next few weeks will be crucial in determining whether this incident has a lasting effect on investor confidence in USDC and Circle’s overall market position.