Abra, a cryptocurrency exchange, has recently acquired a variety of funds from Valkyrie Investments, a digital asset management company, following a resolution with regulators in the United States. As per a recent Bloomberg report, Abra finalized the purchase of multiple trusts from Valkyrie subsequent to reaching an agreement with 25 state regulators.
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The acquisition of funds from Valkyrie Investments by Abra comes after the cryptocurrency exchange resolved issues with regulators in the US. This move signifies a strategic decision by Abra to expand its offerings and strengthen its position in the digital asset management sector. The purchase of trusts from Valkyrie demonstrates Abra’s commitment to growth and innovation in the cryptocurrency market.
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Marissa Kim, the head of asset management at Abra, informed Bloomberg that the agreement encompassed Valkyrie’s Tron and Zilliqa trusts, which have collectively offloaded approximately $71 million worth of assets to investors.
Additionally, the deal also covers Valkyrie funds that have yet to be launched.
According to what Kim told Bloomberg,
“This acquisition will provide [Abra] with a way to expand its current offering of spot and DeFi (decentralized finance) products to a new audience of investors.”
Abra was accused by the State of Texas in 2023 of deceiving investors with the sale of two interest-bearing crypto products, as well as being insolvent or on the brink of insolvency.
In June, Abra reached a settlement with a coalition of states, which included Arkansas, Connecticut, Georgia, Ohio, Oregon, Texas, Vermont, and Washington State. The coalition conducted an inquiry into the company and discovered that it was functioning without the necessary licenses, as stated in a press release by the Conference of State Bank Supervisors (CSBS).
As per the CSBS, Abra has been penalized $250,000 in each jurisdiction and has agreed to reimburse customers with up to $82.1 million in cryptocurrency assets.
As stated by CSBS Chair Charlie Clark,
“State financial regulators take their role to protect consumers and prevent unlicensed activity seriously. Companies that do not operate within the bounds of state laws will be held accountable.”
In the beginning of this year, European digital investment group CoinShares acquired digital asset manager Valkyrie Funds following the approval by the U.S. Securities and Exchange Commission (SEC) of its proposal to establish an exchange-traded fund (ETF) for Bitcoin (BTC) in the spot market.
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