Ripple Labs Tussle with Tetragon, North America’s First Bitcoin ETF Attracts $100 Million in Trading Volumes
Surging prices, anticipation, and steady coin interest round out today’s headlines.
Tetragon Wants Ripple Labs to Redeem $175 Million of Stock, Accuses Them of Playing “Word Games”
Ripple–a for-profit company planning to go public, Brad Garlinghouse—the CEO of Ripple, and Chris Larsen—the co-founder, are accused by the U.S. Securities and Exchange Commission (SEC) of raising funds by illegally selling securities (that is, XRP). The hearing begins next week from Feb 22.
While settlement might take months, even years, before closure, Tetragon lawyers accuse Ripple Labs of playing “word games.” They accuse the XRP issuer of deliberately parsing statements and misstating terms of a 2019 shareholders’ agreement in an attempt not to honor their obligation of redeeming Tetragon stock.
As part of their contract that goes back to 2019, Ripple Labs are supposed to purchase $175 million worth of Tetragon’s stock. They now want the Delaware Chancery Court to compel Ripple Labs to stop all XRP transactions until they settle.
The SEC accusation has scuttled Ripple’s plans. Last year, one of the firm’s executives, Asheesh Birla, said they would aggressively market On-Demand Liquidity (ODL) in 2021. ODL is built on the open-source xCurrent but uses XRP for cheap and instantaneous fund transfer.
North America’s First Bitcoin ETF Attracts $100 Million in Trading Volumes
Investors positively received Canada’s TSX Purpose Bitcoin Exchange-Traded Fund (ETF). The derivatives product attracted over $100 million in trading volumes. Even so, participation levels of both the BCTCC.B–the Canadian dollar-denominated units, and BTCC.U–the American dollar-denominated ticker, tapered in subsequent sessions.
The derivatives market is massive, commanding trillions. However, the absence of better monitoring, developing custody, and widespread manipulation at referencing exchanges prevents the U.S. SEC from approving one.
Still, the CEO of Purpose Investments—the ETF provider, Som Seif, believes Bitcoin has a promising future.
ETFs provide a legal avenue for regulated public companies to invest in Bitcoin and support crypto assets. Crypto supporters say once complex products are approved; crypto prices will surge even higher.
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