Abra, a digital asset and wealth management platform, has purchased Tron (TRX) and Zilliqa (ZIL) among other private crypto funds from Valkyrie Investments.
Bloomberg reported on Friday that Abra acquired the private funds before settling with 25 U.S. regulators over allegations that it operated without the required licenses.
Marissa Kim, head of asset management at Abra Capital Management, an SEC-registered investment advisory firm, said she led the initiative.
Trust Funds in Tron and Zilliqa
Specifically, the acquisitions included the purchase of Tron’s Valkyrie funds, Zilliqa, and other yet-to-be-launched coins.
Kim notes that the crypto-specific funds provide Abra Capital Management with the opportunity to expand its DeFi and spot products to more investors. Kim added that Abra may apply to publicly trade some of the funds, saying this would be subject to market demand.
In the case of crypto funds, the asset manager owns the digital assets on behalf of the investor.
Cryptocurrency shares, TRX or ZIL in this case, can be traded on over-the-counter markets. However, these investment assets are not exchange-traded funds (ETFs) and are only open to accredited investors, institutions, or high-net-worth individuals.
US Regulatory Settlement
The latest news about Abra comes weeks after the company reached a settlement with several US government regulators following allegations of unregistered operations in its crypto asset offering.
The settlement was reached in June and will see Abra return $82.1 million in cryptocurrency to customers in the United States.
Abra also reached an agreement with the Texas Securities and Exchange Commission in January 2024, allowing customers to withdraw their funds.
Crypto Services via Abra Treasury
Abra Capital Management Advertise Abra Treasury launched this week, with crypto services aimed at businesses, family offices, and nonprofits.
These clients can use Abra to store, borrow, trade and yield, with services available via separately managed accounts. Investors will retain ownership of their digital assets, which will be verifiable on-chain.