TechCrunch founder Michael Arrington has announced to create hedge fund which will be called Arrington XRP Capital. investors will buy shares of the fund and receive distributions in XRP. It is the native cryptocurrency of the Ripple Consensus Ledger (RCL) which is the fourth largest cryptocurrency by total market cap.
We’ll pay our own fees and salaries out in XRP as well. We want to “eat our own dog food” and be active users of crypto currencies in as many parts of our fund operations as possible, not just investors. This will make us better investors.
The founding partners of Arrington XRP Capital decided to denominate the fund in cryptocurrency rather than fiat. It makes it easier for cryptocurrency holders and foreign investors to participate in the fund. They chose XRP because its fast and secure settlement infrastructure. Besides it has also been adopted by big companies for example American Express.
The fund is going to invest in cryptocurrencies and initial coin offerings (ICOs), and it may be it will obtain small equity stakes in blockchain startups.