Key Points:
- Abra expands crypto holdings with Valkyrie’s Tron and Zilliqa Trusts acquisition.
- Settles with 25 U.S. states, ceases U.S. operations, refunds $82.1M to customers.
Cryptocurrency trading platform Abra finalized its acquisition of multiple private cryptocurrency trusts from Valkyrie crypto trusts in what could be termed a strategic move amid regulatory challenges.
The acquisition, concluded by Abra Capital Management LP in May, comprises active trusts for Tron and Zilliqa, other than those due for launch.
According to filings with the U.S. Securities and Exchange Commission, Valkyrie crypto trusts reported that these trusts sold significant assets. As of October last year, $21.3 million in assets within a trust backing a Zilliqa token had been liquidated. Another trust, for a token called Tron, completed selling its $50 million digital assets by September 2022. Terms were not disclosed.
Read more: Crypto Prime Brokerage Hidden Road Partners Targets New Funding Round Of $120 Million
Abra Takes Over Valkyrie Crypto Trusts Amid Industry Shifts
The deal will leave Abra in pole position to significantly expand its portfolio of spot and decentralized finance products to cater to new investor demographics. In accordance with market demand, it will also consider an opportunity for some of the trusts to become publicly tradeable.
Abra has settled over two dozen US states, including those over allegations of unregistered operations. Last year, Abra agreed to close its operations in the US. Under this settlement, the company must return $82.1 million in cryptocurrency to US customers.
Valkyrie spent 2024 redoing its operations. It sells off its core exchange-traded fund business, and the co-founder and former CEO is leaving the company.
