Arrington Capital, a prominent Washington-based digital asset management firm, has recently taken a significant step towards launching an XRP-based hedge fund.
The news of this development was initially disclosed on Twitter by U.S. presidential candidate and CEO of Reaper Financial Patrick Riley on July 2. In his tweet, Riley mentioned that Arrington Capital had recently submitted a filing with the U.S. Securities and Exchange Commission (SEC) for an XRP-focused hedge fund, indicating a positive outlook for the endeavour.
“Arrington recently filed with the SEC for an XRP-based hedge fund. Seems there is an expectation for all to go well…” tweeted Riley sharing a photo of Michael Arrington, the founder of Arrington Capital, alongside Brad Garlinghouse, the CEO of Ripple. According to documents perused by ZyCrypto, the filing was made on June 30, 2023.
The said filing elicited excitement among the crypto community, with Pro-Ripple lawyer John Deaton jokingly tweeting, “What do you do when the SEC has spent well over a $100M in manpower and resources the last three years arguing XRP is an illegal security? You apply for an XRP Hedge Fund.”
Hedge funds are investment vehicles or firms that pool capital from accredited individuals or institutional investors to invest in a variety of assets to generate returns. They are known for their flexibility in investing across different markets and asset classes, such as stocks, bonds, commodities, and cryptocurrencies.
While specifics regarding the hedge fund are scarce at the moment, Riley’s announcement suggests that Arrington Capital holds an optimistic view of the potential outcome of the Ripple-SEC case, prompting them to create a hedge fund centered around XRP. Arrington Capital has established two additional funds focused on the Algorand and Moonbeam ecosystems, along with a diverse portfolio of over eighty investments spanning various protocols.
Arrington Capital’s recent action holds substantial significance for Ripple and XRP, particularly in light of the SEC’s ongoing lawsuit brought against Ripple. The lawsuit, initiated in December 2020, alleges that XRP, currently the sixth-largest cryptocurrency by market capitalization, is unregistered security. With all necessary motions filed, the case has been awaiting a summary judgment from Judge Analisa Torres, who presides over the matter.
While the conclusion of the Ripple-SEC case remains uncertain, attorneys, including prominent figures like John Deaton, have been actively offering their predictions on the possible outcomes of this legal battle. Notably, the possibility of an imminent judgment in the Ripple-SEC case has sparked extensive speculation, particularly after recent remarks from the Ripple CEO suggesting it could arrive within weeks.
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- Source: https://zycrypto.com/bullish-for-xrp-arrington-capital-submits-sec-filing-for-xrp-hedge-fund/
