A lot of interesting things are happening in the world of Ripple and XRP. More specifically, Michael Arrington, founder of TechCrunch, will launch a new cryptocurrency fund. Surprisingly, this will be a capital fund mainly focused on XRP. It is evident Ripple’s digital asset has attracted a lot of attention over the past twelve months. This will certainly help the asset grow in value and let more people get exposed to its price.
It will be interesting to see how this new capital fund will play out. In a lot of cases, hedge funds focus on Bitcoin and Ethereum. Some even invest in early stage blockchain startups. One or two may invest in initial coin offerings, which is somewhat risky. So far, no company has shown any major interest in Ripple’s digital asset. That has always been quite surprising, considering how valuable this asset will be. Some people have high hopes for XRP in the next few years.
A Major Boost for XRP
Michael Arrington acknowledges the value of this asset. So much even that he is launching an XRP-oriented capital fund in the near future. Known as Arrington XRP Capital, it will become a $100m hedge fund accessible by investors all over the world. The fund will solely use Ripple’s asset to invest in assets and blockchain technology. It is a good way of exposing more individuals to what this asset is all about. Especially with Ripple locking up over half of the supply soon, things will get very interesting.
Michael Arrington explains the decision as follows:
“We will invest in a wide variety of cryptocurrency assets and related technologies. The primary focus will be on existing tokens. The fund will also invest a portion of its assets in ICOs and more traditional investments such as private equity offerings. Having a hedge fund denominated in a cryptocurrency makes things far easier for investors already holding a lot of cryptocurrency. With no need to convert back to fiat, everyone can save time and fees doing things this way.”
It is remarkable to see a capital fund focus on the least cryptocurrency-like asset of them all. Ripple’s asset is mainly designed for financial purposes, which makes it a logical candidate for a capital fund of this magnitude. It also validates XRP as the best option for real-time transparent transactions in a secure manner. Plus, there is much-needed liquidity for cross-border transactions, which is something other cryptocurrencies may not provide per se. Whether or not this fund will attract a lot of attention, remains to be determined, though.
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