The founder of TechCrunch and CrunchFund, Michael Arrington, has announced that he will invest in cryptocurrencies through a new hedge fund called Arrington XRP Capital. As the name indicates, the fund will be denominated in Ripple’s XRP but will also invest in other digital assets. The group also plans to participate in ICOs and private placements.
$100 Million XRP Investment Fund
Arrington says the cryptocurrency hedge fund, targeting $100 million, has already secured investor commitments totaling more than $50 million. The team expects to begin trading digital currencies in the coming weeks. In addition to Arrington, two partners will join the venture: former TechCrunch CEO Heather Harde and technology expert Geoffrey Arone.
Details of the announcement are summarized below:
This move to invest in digital currencies highlights how cryptocurrencies have become an established presence in Silicon Valley. They now play an important role in the broader financial landscape, and institutional investors are increasingly turning to these assets as part of their portfolios.
Why XRP?
Although the new fund is tied to XRP, it will also conduct buybacks of other digital currencies. Arrington noted that the fund has no commercial relationship with Ripple, and that Ripple is not an investor in the fund. In his announcement, the CrunchFund founder explained that the choice of XRP was based on specific advantages it offers compared with other cryptocurrencies.
He pointed to XRP’s faster transaction times as a key benefit. Overall, the TechCrunch founder expressed optimism about the broader cryptocurrency ecosystem, predicting that total market capitalization could grow from roughly $300 billion to $700 billion.