TechCrunch Founder Arrington Debuts $100M Cryptocurrency Hedge Fund

Nov 29 2017 | 9:13pm ET

TechCrunch founder Michael Arrington has reportedly launched a new $100 million hedge fund denominated in XRP, the digital currency issued by distributed ledger pioneer Ripple. 

The new fund was will be housed in a new asset management firm named Arrington XRP Capital, Arrington said in a blog post Tuesday, and already has capital commitments for $50 million of the total. It plans to begin trading in the next few weeks. Arrington, who was the CEO of digital website TechCrunch and founded venture firm CrunchFund in 2011, said that the fund will invest into a wide variety of cryptocurrency assets and related technologies with a primary focus on existing tokens but including ICOs and more traditional investments such as private equity offerings.

Arrington is joined at the new firm by Heather Harde, who was CEO of TechCrunch after its sale to AOL in 2010, and veteran entrepreneur Geoffrey Arone. Investors will contribute XRP to the fund and all distributions, fees and salaries will also be paid in XRP. 

The choice of Ripple, which Arrington noted is not investing in the fund, was due in part to the company’s fast and secure settlement infrastructure, which will be used by the fund’s non-U.S. investors for cross-border investments and redemptions.

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