Arrington Capital, a thesis-driven firm that has been investing in digital assets and Web3 as early as 2017 has made a move to launch an XRP-based hedge fund.
As disclosed by the CEO of Reaper Financial, Patrick L. Riley, Arrington Capital has filed a request with the United States Security and Exchange Commission (SEC) regarding the launch of an XRP-based hedge fund.
Read Also: Analyst Says Lawsuit Against Ripple Executives is As Good As Lost. Here’s why
Notably, hedge funds are investment vehicles or firms that pool capital from accredited individuals or institutional investors, investing them in a variety of assets to generate high returns.
Riley announced this groundbreaking news in a tweet where he quoted a picture of Arrington Capital’s founder, Michael Arrington beside Brad Garlinghouse, CEO of Ripple.
While there were not many details to come with this announcement, the Reaper Financial Chief implied that Arrington seems to have a positive expectation regarding the Summary Judgment in the longstanding Ripple-SEC case. Hence, the push to launch a hedge fund that has XRP at its core.
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
What does Arrington’s move mean for Ripple and XRP?
While this development might be a big boost for XRP and Ripple, the Silicon Valley tech company still has its lawsuit to face against the U.S. SEC. It bears noting that the SEC alleges that the sixth-largest crypto asset by market capitalization — XRP — is an unregistered security.
Read Also: Thinking Crypto Podcast Host Gets Eyes On XRP for Bullish Trend Once Ripple Wins Lawsuit
This then served as the motive behind the lawsuit filed against the San Francisco-based crypto solutions company and its executives in December 2020. With all necessary motions filed in the case, all eyes are now on the presiding judge Analisa Torres to issue the summary judgment.
In the wake of Arrington’s request to launch an XRP-based hedge fund amid several crypto exchanges not supporting the crypto and even Ripple ditching it for other tokens in its recently launched Liquidity Hub, some members of the XRP community speculated that the CEOs might know something positive others do not. In particular, a certain community member wrote, “They know something is cooking.”
While the precise date for the conclusion of the Ripple-SEC case remains unknown, several attorneys including John Deaton and Fred Rispoli continue to share their predictions.
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