It has been reported that Morgan Creek Digital, an asset management company that is backed by investment advisor Morgan Creek Capital has partnered with Bitwise Asset Management to launch a new crypto index fund aimed at institutional investors.
Morgan Creek, which was founded by Mark Yusko in 2004, and Bitwise Asset Management are hoping to attract the highly coveted institutional investors, a group that includes pensions, endowments and family offices to make the jump to digital assets.
“Every investor should consider digital assets”
Yusko, who founded and served as the chief investment officer of the UNC Management Company previously, has gone on record as saying that “every investor should be considering an allocation to digital assets.”
Recently Yusko has said that his new crypto index fund could be close to attracting a public pension fund if a meeting in a few weeks goes as well as he expects it to, which would mark the first time that a public pension fund was invested into crypto.
Bitwise recently filed to launch an exchange-traded fund (ETF) based on one of their indexes, but the success of such a move remains to be seen, with other ETF applications seeming to either fall at the first hurdle with the US Securities and Exchange Commission or face delays.
The partnership between Bitwise and Morgan Creek includes ten cryptocurrencies that account for around 75 percent of the current cryptocurrency market.
The coins that have been included have been determined by Bitwise’s rules-based digital asset index methodology, as well as an advisory committee consisting of Morgan Creek and Bitwise analysts.
A decision that may surprise many crypto enthusiasts is the exclusion of both Ripple and Stellar from the Digital Asset Index.
Bitwise CEO and co-founder Hunter Horsley claimed that both Ripple and Stellar were excluded due to the so-called supply of coins mined and acquired before they become publicly available.
A common practice for many cryptocurrencies is for their creators, developers, and other staff to hold as much as 10 percent of the entire supply, but there have been occasions where more than that have been held back, and this gives the owners far more control and influence.
Speaking about the matter, Mark Yusko commented that “It doesn’t mean those are bad tokens or bad models, they are just different.”
A rigorous standard
Many have asked why Morgan Creek chose to parent up with Bitwise for this new crypto index fund partnership, and the answer is primarily due to Bitwise experience in developing indexes that operate with a rigorous enough standard for institutional investors according to Yusko.
Horsley believes that institutional investors see now as the time to buy into digital currencies due to what seems like the end of the hysteria of 2017 where prices skyrocketed.
It’ll be interesting to see where this partnership goes, and how the meeting that was mentioned by Yusko to determine the direction of an unnamed public pension fund turns out.
If things go as the head of Morgan Creek believes, we could see history made.
Lover of all things crypto, blockchain and AI, professional tech scribe & part of the editorial team at Crypto Disrupt.