Michael Arrington, a founder of TechCrunch, has announced a new hedge fund to deal with crypto assets and invest in token sales, equities and debt.
Amazing news! Tell me more
Arrington is raising $100 mln for a hedge fund called Arrington XRP Capital. The fund already has commitments for over $50 million, and they plan to begin trading in the next few weeks.
The fund is denominated in XRP – one of the largest cryptocurrencies, developed by Ripple. Investors can contribute only XRP, not dollars or other fiat, to the fund. Although, as he says, the fund won’t have commercial relationships with Ripple.
Why is it important
Michael Arrington is one of the most prominent figures in tech industry. Putting his own reputation behind crypto investments, he gives a signal to other important people in tech to start using the new ways of investment.
What can we learn from it
- Arrington’s career, in a way, showcases the evolution of the startup industry. First he founded TechCrunch, a startup media, then CrunchFund for VC investments in startups, and now – a crypto fund. “This is what I think I’ll be doing the rest of my career,” he says.
- A hedge fund denominated in a cryptocurrency makes things far easier for investors who already hold a lot of cryptocurrency. So we are talking about a new generation of investors here.