Charles Esther
Arca Chief Investment Officer Jeff Dorman announced that the digital investment firm has sold all its shares in Circle.
This decision comes after Circle, the stablecoin company, recently went public with a listing on the New York Stock Exchange (NYSE).
Dorman had publicly criticized Circle in a harsh open letter posted on social media on June 5.
In the letter, he expressed frustration over what he called a “throwaway” allocation of shares given to Arca during Circle’s initial public offering (IPO).
According to Dorman, Arca placed an order for $10 million worth of Circle shares in April 2025.
Despite being one of the earliest investors and a longtime supporter, Arca was only allocated $135,000 in shares.
Dorman’s letter, which has since been deleted, said, “We pinged you separately two months ago indicating our order, and you thanked us for the support.”
He added, “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.”
Following this experience, Dorman declared that Arca is closing all accounts with Circle.
He further stated that the firm would inform every dealer they work with that they will no longer accept USDC, Circle’s stablecoin.
Circle did not respond to requests for comment at the time of publication.
Circle’s public listing is a major milestone in the cryptocurrency industry.
The company is the issuer of USDC, the world’s second-largest stablecoin, with a market capitalization exceeding $61 billion.
By listing on the NYSE, Circle has gained access to the world’s deepest capital markets.
Circle began trading under the ticker symbol CRCL on June 5, following an IPO that raised $1.05 billion.
The company’s stock price surged 167% on its debut day, closing at $82 per share.
The rally continued on June 6, with the stock reaching intraday prices around $115.
This rise contrasts sharply with the negative reaction from Arca, highlighting tensions between the company and some of its early investors.
