TechCrunch founder Michael Arrington has announced the launch of Arrington XRP Capital – a new $100 million cryptocurrency hedge fund.
The announcement was made at CoinDesk's Consensus: Invest in New York. In a blog post, Arrington said that the fund has commitments for over $50 million so far and trading is expected to begin in the forthcoming weeks.
“We will invest in a wide variety of cryptocurrency assets and related technologies. The primary focus will be on existing tokens. The fund will also invest a portion of its assets in ICOs, as well as more traditional investments such as private equity offerings,” he said.
The fund is denominated in Ripple’s XRP – currently the fourth most valuable cryptocurrency by market cap. It will accept contributions from investors only in XRP and will pay all distributions, fees, etc. in this cryptocurrency.
Arrington said that a cryptocurrency-denominated hedge fund will make things easy for investors who already hold quite a considerable amount in cryptocurrencies. This would help save time and fees. Moreover, using Ripple’s fast and secure settlement infrastructure would make it easy for non-U.S. investors to make investments in the fund as well as redemptions.
Arrington will be joined by Heather Harde, former CEO of TechCrunch, and experienced product and technology executive Geoffrey Arone as co-partners of the new fund.
“With this new fund I’m signaling my intent to spend the rest of my career on cryptocurrencies,” he added.
