As an analyst with a background in fintech and experience in the crypto industry, I view Abra’s acquisition of Tron (TRX) and Zilliqa (ZIL) trusts from Valkyrie Investments as a strategic move to expand its offerings and cater to a wider investor base. The timing of this deal, just before the settlement with U.S. state regulators over unregistered operations, raises some concerns but does not necessarily tarnish Abra’s reputation in my opinion.
As a financial analyst, I would express it this way: I have analyzed recent market news and discovered that Abra, the digital assets and wealth management platform, has acquired select private crypto trusts, including those holding Tron (TRX) and Zilliqa (ZIL), from Valkyrie Investments.
Last Friday, Bloomberg announced that Abra obtained the private trusts right before reaching a resolution with 25 US regulatory bodies concerning allegations of unlicensed operations.
Marissa Kim, the head of asset management at Abra Capital Management LP – which is registered with the US Securities and Exchange Commission as an investment advisor – took the lead on this undertaking.
Tron and Zilliqa trusts
As an analyst, I would rephrase that sentence as follows: I analyzed the recent acquisitions made by our company, which involved the purchasing of trusts for Tron and Zilliqa, among others, that are still in their launching stages as Valkyrie Trusts.
Kim points out that Abra Capital Management can broaden the reach of its spot and decentralized finance (DeFi) offerings through crypto private trusts. If market conditions permit, Abra could consider making some of these trusts publicly traded, according to Kim.
With crypto trusts, an asset manager owns digital assets on the investor’s behalf.
In simpler terms, TRX and ZIL coins can be bought and sold through non-exchange platforms called over-the-counter markets. But, it’s important to note that these digital assets differ from exchange-traded funds (ETFs). Access to them is restricted to accredited investors, institutional entities, or individuals with substantial wealth.
US state regulator settlement
Recently, Abra made headlines following a series of settlements it reached with various US regulatory bodies over allegations of conducting unregistered crypto asset offerings.
I, as an analyst, can share that in the month of June, Abra reached a resolution to refund a substantial sum of $82.1 million in cryptocurrencies to its American clientele.
In January 2024, Abra reached an agreement with Texas securities authorities, enabling clients to retrieve their investments.
Crypto services via Abra Treasury
This week, Abra Capital Management unveiled Abra Treasury, a new offering geared toward corporations, family offices, and non-profit organizations, which focuses on crypto-related services.
Customers have the ability to utilize Abra for safekeeping, borrowing, trading, and earning returns on their digital assets, all with provided services. These offerings are accessible through individually managed accounts. The investors maintain the legal ownership and title of their digital assets, which can be confirmed on the blockchain.
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2024-07-13 00:48