$100 Million Crypto Fund Launched by TechCrunch Founder Michael Arringtonbr>
Michael Arrington, the founder and former editor-in-chief of TechCrunch, has revealed a new $100 million cryptocurrency hedge fund denominated in XRP, the cryptocurrency created by blockchain payments company Ripple.
Called Arrington XRP Capital, the new fund was announced at the Consensus: Invest conference in New York. The fund currently has commitments for more than $50 million and plans to begin trading in the coming weeks. It will buy and hold digital assets while making investments in initial coin offerings (ICO), equities and debt. Investors will contribute Ripple’s XRP instead of fiat currencies to the fund, and distributions and fees will also be paid in Ripple XRP.
Arrington said he chose to denominate the fund in XRP because he likes the financial infrastructure that Ripple has build up around it. He added that it also makes sense for a fund dedicated to crypto investments to be denominated in a digital currency because it provides a much faster way to conduct transactions than fiat currencies.
Joining Arrington as partners will be former TechCrunch CEO Heather Harde and Geoffrey Arone, an experienced product and technology executive with experience in cryptocurrency. Arrington and Geoffrey will be leading Arrington XRP Capital’s investment team.
Arrington said that over 10% of his net worth is in cryptocurrencies and that it will soon increase substantially, as he’s also investing in the fund.
“A year ago I was just a crypto enthusiast,” said Arrington. “Now I’ve altered my career path to focus entirely on cryptocurrencies and related technologies. And this isn’t just a short-term focus. With this new fund, I’m signaling my intent to spend the rest of my career on cryptocurrencies.”
Arrington rose to Internet prominence with his Silicon Valley blog, TechCrunch. TechCrunch primarily covers the business side of tech, reporting breaking tech news and bold opinions on new products. In 2011, he founded a venture capital firm called CrunchFund, along with MG Siegler and Patrick Gallagher.