Crypto exchange Abra is making a big move after facing some legal hurdles. They’ve just bought a bunch of funds from Valkyrie Investments, a company that manages digital assets.
Abra’s Big Buy
Abra bought several of Valkyrie’s trusts, including those focused on Tron and Zilliqa. These trusts have already sold about $71 million worth of assets to investors. The deal also includes Valkyrie funds that haven’t been launched yet.
Abra’s head of asset management, Marissa Kim, says this purchase will help them reach more investors and offer new products.
What Led to the Deal?
Earlier this year, Texas accused Abra of misleading investors with their crypto products and even claimed they were nearly bankrupt. Abra ended up settling with several states, including Texas, Arkansas, Connecticut, Georgia, Ohio, Oregon, Vermont, and Washington.
As part of the settlement, Abra paid a hefty fine of $250,000 per state and promised to return up to $82.1 million worth of crypto assets to customers.
Valkyrie’s Recent Moves
Valkyrie itself has been busy too. Earlier this year, they were bought by CoinShares, a European investment group. Valkyrie also got the green light from the SEC to create a Bitcoin ETF, which allows investors to buy Bitcoin through a traditional stock exchange.
The Takeaway
This deal shows that Abra is still moving forward despite the regulatory challenges they faced. By buying up Valkyrie’s funds, they’re hoping to expand their reach and offer new products to investors. It’s a big move for Abra, and it will be interesting to see how it plays out in the future.
