The CEO of Reaper Financial, Patrick L. Riley, has alluded to an intriguing development for XRP. He claimed on Twitter that an XRP-based hedge fund has just been registered with the SEC by Arrington Capital, a digital asset management company in blockchain-based capital markets that was established in 2017.
There is hope for everything to go smoothly, Riley says as good news.
“Arrington just submitted an SEC filing for an XRP-based hedge fund. It appears that everything will proceed according to plan, the Reaper CEO tweeted.
“Arrington XRP Capital,” a multi-strategy hedge fund that invests in early-stage venture and public markets, is mentioned on Arrington’s website.
Hedge funds pool investor funds and make investments with the intention of earning a profit. Institutional investors, such pension funds and insurance companies, as well as wealthy people, make up the majority of investors.
According to an SEC investor guide, hedge funds are excluded from a number of the laws “intended to protect investors.”
Depending on the amount of assets in the hedge funds the manager advises, certain hedge fund managers might not be obliged to register with the SEC or file public reports with the agency.
The managers of hedge funds, however, have a fiduciary obligation to the funds they administer and are subject to the same anti-fraud legislation as other market participants.
If authorised, the XRP hedge fund will provide institutional investors more exposure to the cryptocurrency.
According to CoinShares, a company that provides cryptocurrency exchange-traded products (ETP), digital asset investment products saw the largest weekly inflows since July 2022, totaling $199 million, and correcting nearly half of the previous nine consecutive weeks of outflows.
Its most recent data shows that ETP trading volumes climbed by an average of 170% this year, reaching a total of $2.5 billion.
Only $0.24 million of the inflows were reported by XRP, which only got a minor share. XRP had inflows of $1.1 million in the preceding week.
