Bloomberg reported on Friday that Abra recently acquired private trusts ahead of settling with 25 U.S. state regulators over allegations of operating without the necessary licenses. The initiative was undertaken by Abra Capital Management LP, a U.S. Securities and Exchange Commission (SEC)-registered investment advisor, as noted by Marissa Kim, the head of asset management at Abra.
According to Kim, the acquisition of crypto private trusts presents an opportunity for Abra Capital Management to expand its offerings in spot and decentralized finance (DeFi) products to a wider range of investors. Kim also mentioned the possibility of filing for some of the trusts to be publicly traded, contingent upon market demand.
These crypto trusts allow asset managers to hold digital assets on behalf of investors, with the shares of the coins being tradable in over-the-counter (OTC) markets. However, it’s essential to note that these investment assets are not exchange-traded funds (ETFs) and are only accessible to accredited investors, institutions, or high-net-worth individuals.
The settlement, which took place in June, will require Abra to return $82.1 million in cryptocurrencies to its U.S. customers. These customers can continue to use Abra for custody, borrowing, trading, and yield services, accessible via separately managed accounts.
Importantly, investors will maintain the title and ownership of their digital assets, which can be verified on-chain.