- Arrington Capital has filed with the SEC to launch an XRP-based hedge fund, a surprising development amidst the ongoing Ripple lawsuit.
- Despite the legal uncertainties surrounding XRP, Arrington Capital’s move has spurred optimism within the XRP community.
Amid the ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC), Arrington Capital, a digital asset management firm, has proposed an audacious plan. The firm has filed with the SEC to establish an XRP-based hedge fund, according to Patrick L. Riley, CEO of Reaper Financial.
— PATRICK L. RILEY 🇺🇲 (@PLR_2024) July 2, 2023
The Unexpected Move: An XRP-Based Hedge Fund
The announcement was made via a tweet where Riley referenced a picture of Michael Arrington, the founder of Arrington Capital, and Ripple CEO Brad Garlinghouse. While further details about the filing were not disclosed, Riley stated there’s a positive expectation for the initiative.
The timing of Arrington Capital’s move is noteworthy, given the pending lawsuit against Ripple by the SEC. The legal dispute revolves around allegations that Ripple and its executives violated federal laws by offering XRP as an unregistered security.
>> Buy XRP quickly and securely with PayPal, credit card or bank transfer at eToro with low fees and deposit protection. Get started with XRP now. Visit Website <<
Despite this uncertain landscape, the decision to launch an XRP-based hedge fund has provoked a flurry of reactions from the XRP community. There is speculation among Twitter users that Arrington Capital may have insider information about the lawsuit’s potential outcome.
Arrington Capital, established in 2017, is a thesis-driven firm focused on digital assets and Web3. As described on its website, the company specializes in early-stage startups and public markets.
Hedge funds are investment vehicles that aggregate capital from investors to employ various strategies, intending to yield significant returns. Such funds typically attract wealthy individuals, individual investors, and pension funds. According to the SEC, hedge funds are not bound by certain regulations designed to protect investors, which may give Arrington Capital some leeway in its operations. For instance, a hedge fund manager is not required to file public reports or register with the SEC, contingent on the fund’s asset volume.
This daring proposition by Arrington Capital, for an XRP-based hedge fund, underscores the ongoing interest and investment potential within the blockchain-based capital market, despite existing legal complexities. The development, if successful, could provide XRP with greater exposure to institutional investors, broadening its reach in the digital asset space.
Best Crypto Exchange for Everyone:
- Invest in Ripple (XRP) and 70+ cryptocurrencies and 3,000 other assets.
- 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
- Copy top-performing traders in real time, automatically.
- Regulated by financial authorities including FAC and FINRA.
2.8 Million Users