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Arrington Capital is not bothered about the ongoing Ripple lawsuit as it files for an XRP-based hedge fund with the SEC.
In an exciting development, Reaper Financial CEO Patrick L. Riley revealed that Arrington Capital recently filed with the United States Securities and Exchange Commission (SEC) to launch an XRP-based hedge fund.
Riley made this known 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
Although Riley did not share other details of Arrington Capital’s recent filing with the SEC, he disclosed that “there is an expectation forall to go well.”
Upcoming Good News for Ripple in SEC Lawsuit?
Arrington Capital’s move to launch an XRP-based hedge fund may come as a surprise to many. Notably, 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.
While the case is ongoing, Arrington Capital has filed with the SEC to launch an XRP-based hedge fund. The move has stirred reactions from the XRP community.
Some Twitter users speculate that Arrington Capital might have gotten insider information about the lawsuit.
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.