Crypto trading platform Abra has acquired several private cryptocurrency trusts from Valkyrie Investments. This acquisition comes just before Abra’s settlement with 25 U.S. state financial regulators over operating without appropriate licenses.
Points
- Abra acquired private cryptocurrency trusts from Valkyrie Investments.
- Acquisition includes Tron and Zilliqa trusts among others.
- Abra settled with regulators, agreeing to return $82.1 million to U.S. customers.
- Valkyrie has been divesting portions of its business throughout 2024.
Crypto trading platform Abra has made headlines by acquiring several private cryptocurrency trusts from Valkyrie Investments. This strategic acquisition includes the Tron and Zilliqa trusts, among others, as part of Abra’s efforts to expand its offerings. According to Marissa Kim, Abra’s head of asset management, this move will allow Abra Capital Management （ACM） to broaden its range of spot and DeFi products to a new audience of investors.
The acquisition also comes just before Abra’s settlement with 25 U.S. state financial regulators over claims that it operated without the necessary state licenses. As part of the settlement, Abra agreed to return $82.1 million in crypto assets to U.S. customers and ceased offering services in the country last year. Abra Capital Management is an SEC-registered investment advisor, ensuring compliance with regulatory standards moving forward.
Throughout 2024, Valkyrie has steadily divested portions of its business. This includes selling its primary exchange-traded funds business to CoinShares International Ltd. earlier this year. Valkyrie’s private trusts business involved funds tied to cryptocurrencies such as Algorand, Avalanche, BitTorrent, Dash, Polkadot, and Bitcoin.
解説
- Strategic Acquisition: Abra’s acquisition of Valkyrie cryptocurrency trusts strengthens its position in the crypto market by expanding its range of products.
- Regulatory Compliance: Abra’s settlement with U.S. state regulators highlights the importance of operating within legal frameworks and returning assets to customers.
- Valkyrie’s Divestment: Valkyrie’s steady divestment of its business, including selling ETF and private trust segments, indicates a strategic shift in its operations.
- Market Expansion: The acquisition allows Abra to reach new investors, leveraging the acquired trusts to offer a broader range of crypto investment options.
- Regulatory Landscape: The case underscores the ongoing regulatory scrutiny in the crypto industry and the need for companies to adapt and comply with evolving regulations.