Abra Unveils RIA Focused on Digital Assets
Abra, a digital asset service and wealth management platform, launched Abra Prime for institutions and Abra Private for private clients after the U.S. Securities and Exchange Commission (SEC) approved its subsidiary Abra Capital Management LP to operate as a registered investment advisor (RIA).
The new venture positions Abra as an asset manager rather than just a digital assets lender.
Abra will provide customized cryptocurrency investment solutions through a separately managed account model. The platform integrates over-the-counter (OTC) trading (including spot and options), lending, staking and yield services, and asset management into one product.
The San Francisco-based firm focuses on individual investors, family offices and institutions wanting exposure to digital assets ranging from Bitcoin and Ethereum to non-fungible tokens, according to a form ADV filed with the SEC that listed the firm’s assets at over $102 million.
Abra will now operate as a fiduciary and allow clients to get exposure to the digital asset ecosystem under a separate account structure built on-chain, where clients retain title and ownership over their assets and their assets will be independently verifiable on-chain, the firm said.
“We see significant demand for a trustworthy and safe platform to earn yield on Bitcoin, Ethereum and other crypto assets and borrow against crypto holdings,” said Marissa Kim, head of Asset Management at Abra. “We allow our clients to access the DeFi markets without requiring investors to navigate the complexity themselves.”
One of the most significant developments for Abra was the choice to discontinue its retail business lines in the U.S. while keeping a retail presence globally. CEO Bill Barhydt noted that the company’s former approach included taking on counterparty risk, which was a significant issue. Abra intends to limit this risk by focusing on institutional clients, who include high-net-worth individuals, hedge funds, and venture capitalists.
“As an SEC registered investment advisor, we are excited for Abra’s next chapter, and we remain committed to building a future where financial services are digital, open and borderless,” Barhydt said.