Ripple Labs has given an authorization to VivoPower International to launch a $300 million investment fund. VivoPower will run the fund through a joint venture with the South Korean asset manager, Lean Ventures, increasing institutional access to Ripple’s equity.
How Will VivoPower Access Ripple Labs Shares?
The investment vehicle will be managed by Lean Ventures according to the official statement. The Seoul-based firm is also the fund manager for the South Korean government and private investors. Hence, its support provides the new business with greater credibility.
K-Weather, which is a Korean company, has also shown interest in becoming a member of the fund. Vivo federation, the digital asset division of VivoPower, will be in charge of finding and buying the Ripple Labs shares.
Ripple has already granted written consent to the first batch of preferred shares. This is part of Ripple’s overall expansion strategy, encompassing its multi-chain RLUSD strategy.
Efforts are currently being done to negotiate with existing institutional shareholders to reach the $300 million mark. Regulatory advancements also support this institutional interest, including the recent OCC banking license for Ripple in the U.S.
VivoPower expects to earn at least $75 million from management and performance fees over a period of three years. This estimate depends on the size of the fund at present. Hence, any increase in the future valuation of Ripple Labs will be an additional benefit to the company.
Ripple Investment Strategy Is Based On Korean Demand
According to Adam Traidman, the Chairman of the Advisory Council of VivoPower, the strategic value of Korea is vital. According to him, Korean investors will gain access to Ripple equity at lower prices than XRP market valuations.
Managing Partner of Lean Ventures, Chris Kim, confirmed the strong demand for Ripple-related products in Korea. He also said that crypto investors in Korea are always eager to invest in opportunities associated with XRP.
Why Did VivoPower Shares Jump?
VivoPower’s stock jumped 13% to $2.88 following the announcement, per Yahoo Finance data. Crypto analyst Crypto Eri said the fund is designed to give investors exposure to Ripple and XRP-linked growth.
She noted that the structure may offer a material discount to spot market pricing. The analyst further said that the structure targets return over a three-year period.
Source: https://coingape.com/ripple-attracts-300m-institutional-bet-via-new-vivopower-fund/
