Arrington Capital is not bothered about the ongoing Ripple lawsuit as it files for an annual amendment to its XRP-based hedge fund with the SEC.
Arrington Capital recently filed with the United States Securities and Exchange Commission (SEC) to effect an annual amendment to Arrington XRP Capital, its XRP-based hedge fund.
Reaper Financial CEO Patrick L. Riley disclosed this in a tweet over the weekend while quoting a picture of Arrington Capital’s founder Michael Arrington alongside Ripple CEO Brad Garlinghouse.
Arrington recently filed with the SEC for an XRP-based hedge fund. Seems there is an expectation for all to go well… https://t.co/Rq72BouFqr pic.twitter.com/gHMYNychDJ
— PATRICK L. RILEY ?? (@PLR_2024) July 2, 2023
Riley mentioned that Ripple was looking to launch a new XRP hedge fund, but investigations uncovered that the firm was only seeking to effect an annual amendment to its private funds, including the existing XRP fund.
Michael Arrington, founder of Arrington Capital, disclosed in late 2017 that the firm was raising $100 million to launch the XRP-based fund. Arrington made this announcement at the Consensus Invest in November 2017.
Upcoming Good News for Ripple in SEC Lawsuit?
Notably, Arrington Capital’s XRP-based fund launched before the SEC filed a lawsuit against Ripple. Despite the lawsuit, Arrington Capital has retained the fund when most institutional players are steering clear of XRP.
The crypto community eagerly awaits a summary judgment decision for the SEC vs. Ripple lawsuit. The lawsuit relates to whether Ripple and its execs violated federal laws by offering XRP as an unregistered security.
Arrington Capital’s Hedge Fund
Launched in 2017, Arrington Capital is a thesis-driven firm that invests in digital assets and Web3. According to its website, Arrington XRP Capital is a multi-strategy hedge fund that specializes in startups at their early stages and public markets.
For context, hedge funds pool investors’ money using diverse strategies while hoping to make significant returns.
Potential clients are expected to have a specific minimum income level or assets to invest in hedge funds. Typical investors of hedge funds include wealthy individuals, individual investors, and pension funds.
According to a document by the SEC, hedge funds are not required to follow some regulations established to protect investors. For instance, a hedge fund manager will not be required to file public reports or register with the SEC. However, this depends on the amount of assets in the hedge fund.
Notably, hedge fund managers are subject to similar KYC and AML rules as other market players.
Note: This article was updated at 4:51 (UTC) on July 4 to reflect the fact that Arrington Capital was looking to effect an annual amendment for the existing Arrington XRP Capital fund. The original article had erroneously stated that they were launching a new XRP fund.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
