Morgan Creek Capital Management firm in collaboration with Bitwise Asset Management company has launched a new cryptocurrency index fund to give institutional investors exposure to DLT-based virtual currencies, according to a CNBC report on August 28, 2018.
Morgan Creek Bitwise Digital Asset Index (MCBDAI)
According to sources close to the matter, the crypto asset fund called Morgan Creek Bitwise Digital Asset Index (MCBDAI) is targeted at institutional investors.
The fund has a minimum investment of $50,000 and makes it possible for institutional investors to have access to a vast array of digital assets without having to bother about how to store their coins securely.
After the exponential rise in the bitcoin price as well as that of altcoins last year, the bears have since taken over the cryptosphere, with crypto pessimists like Nobel Prize-winning economist Joseph Stiglitz predicting that bitcoin would be “worth just $100 in 10 years” time.
Even at that, the Chief Investment Officer at Morgan Creek Capital, Mark Yusko, remains optimistic that the price of bitcoin will surge to $500K shortly.
The diehard bitcoin bull also told CNBC that in spite of the recent digital currency market slump, a vast array of institutional investors including endowments, pension funds, family offices and others are still very much interested in investing in the super volatile digital asset class.
Institutions “Re-evaluated” Bitcoin in Bear Market
Yusko further stated that bitcoin‘s bloodbath is not entirely a bad thing in itself, as it has given institutional investors a “more rational way to evaluate cryptocurrencies.”
Established in 2017, Bitwise Asset management firm pioneered the first digital assets index fund and has been at the frontline of the crypto revolution since then.
On August 15, 2018, Bitwise added three new cryptoassets index funds to its existing offering. The index funds were formulated to cover the 20 Mid Cap cryptocurrencies, 70 Small Cap cryptos, and the Bitwise 100 Total Market Segments.
The team also renamed their pioneer HOLD 10 Index to Bitwise 10 Large Cap Crypto Index.
“The methodology draws on the best practices from the modern indexing of equities, bonds, commodities, and fiat currencies, and pairs them with crypto-native factors to ensure the indexes are safe and replicable,” said the Global Head of Research at Bitwise, Matt Hougan
At press time the price of bitcoin is at the $6,878 region and it remains to be seen when the bullish trend will resume fully.