Morgan Creek launches cryptocurrency Fund
Institutional money is on its way!
In news out this morning from CNBC, Morgan Creek Digital and Bitwise Asset Management have partnered to launch the Digital Asset Index Fund.
The purpose?
To give institutional investors exposure to a broad basket of cryptocurrencies.
The news release can be found here:
Is institutional money really even interested?
According to the CIO of Morgan Creek Capital, Mark Yusko, that is a resounding, "YES"!
Specifically, Yusko said that many endowments, pension funds, and even family offices have been increasingly looking for ways to gain some exposure to the space.
While it wasn't entirely clear which cryptocurrencies would be included in the fund, Yusko did say that it would provide diversified exposure to the space.
The minimum investment would be $50,000 USD.
The fund would specifically track the Morgan Creek Bitwise Digital Asset Index.
(Source: https://www.istockphoto.com/videos/sheep-farm)
Do you hear that?
The herd is coming...
This fund, as well as several other recent developments, are working to make crypto investing much more palatable for institutional investors.
The fund would help alleviate the major problems facing institutional investors regarding buying, storage, and safekeeping of their digital assets.
The big one being storage.
No one wants to hold these things.
With custody solutions being launched over the coming months I think we are in the very beginning stages of institutional money making their way into the space.
Stay informed my friends.
Image Source:
https://www.businessinsider.com/top-wall-street-bankers-on-in-the-ipo-market-2016-3
Follow me: @jrcornel
Would be great if Institutional Investors get onboard 👍💰👍
They will, just need a couple well known ones to take the leap and then FOMO will follow.
Many quantitative advisors have been saying that adding a small exposure to cryptocurrencies add a diversification benefit to portfolios. The interesting point is that it also added returns in the models they ran.
Yes I have seen that as well. I believe the optimal model showed exposure around 10% or so to cryptocurrency (bitcoin). Though 5% was also mentioned for those slightly more risk averse.
According to Tom Lee Bitcoin has uncorrelated alpha with other asset classes which make it extremely valuable to portfolios. There are a few assets that display the same characteristics.
There are very few as uncorrelated as btc
That's Really Cool
If they do that right, this could be almost as powerful as an ETF. Nice one!
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I agree. Institutional investors are going to have a bit of FOMO themselves. Once a couple of the big ones jump in, everyone else will follow suit. Bitcoin will be sky high when that happens.
Thanks for the valuabe information @jrcornel! 👍
Of course. I think by Spring of 2019, everyone is going to wish they had been buying right now.
Then they'll say that again in Spring 2020, that they had bought in Fall of 2019.
Haha yes that is probably true. Boom and bust cycle continues all the way up as retail buys the tops and sells the lows.
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STOPsend in the goat.
Baaahhhhh
is it the start of something positive i guess it is finally the doors will be opened for crypto for institutional money to flow in
That's great news !!
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12 Million users have bags of shitcoins ready for them :P
Ha, if they are like many of the others, not sure how many altcoins they will be buying. Most seem to be focused on the top handful listed on coinmarketcap, and then also the projects that haven't launched yet.