A New Cryptocurrency Hedge Fund Being Launched: $100 Million In Capital
On Tuesday, a launch of a $100 million bitcoin hedge fund was announced by Silicon Valley venture capitalist Michael Arrington.
“A year ago I was just a crypto enthusiast. Now I’ve altered my career path to focus entirely on cryptocurrencies and related technologies. . . . With this new fund I’m signaling my intent to spend the rest of my career on cryptocurrencies,” told Michael.
In his blog post Arrington announced about creating Arrington XRP Capital, which will buy various crypto assets, invest in initial coin offerings. The fund will be denominated not by dollars or even bitcoin, but by XRP, a cryptocurrency developed by Ripple.
XRP is the fourth-largest cryptocurrency by market cap, according to CoinMarketCap.com, at $11.5 billion. Arrington intends to start trading in the coming weeks, with $50 million money investment.
“Some people think this is crazy and that we’re on the edge of a bubble-bursting meltdown,” he wrote. “Others, however, argue that we’re just getting started in crypto. I’m one of those people.”
He said “well over” 10% of his net worth is in cryptocurrencies.
“There will be dramatic ups and downs along the way,” Arrington wrote, “but we’re in this for the long haul.”