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Morgan Creek: New index fund for cryptocurrencies


Another index fund for digital assets enables institutional investors to enter the crypt world. The investment product developed by Morgan Creek Digital and Bitwise comprises ten of the largest cryptocurrencies. However, already-crafted cryptos like XRP or Stellar are not part of the portfolio.

With “only” 25,000 US dollars to be there: The target group of the “Digital Asset Index Fund” baptized funds are, as for all financial products of this kind, institutional and accredited investors. These would have insisted on the introduction of such a fund in view of the development of the crypto market, it is said in a press release of 30 August:

“Institutional investors see the decline as an opportunity to increase exposure to this area and have urged us to bring this fund to market quickly.”

Said, done – since August 30th, investors can invest in the index fund, which includes the following coins:

Bitcoin (69.8 percent)
Ethereum (15.1 percent)
Bitcoin Cash (5.4 percent)
EOS (3.2 percent)
Litecoin (2.3 percent)
Dash (1.1 percent)
Zcash (1.1 percent)
Monero (1.0 percent)
Ethereum Classic (0.9 percent)
OmiseGO (0.2 percent)

The information in parentheses refers to the weighting of each asset.
Unfortunately have to stay outside: XRP, XLM

The informed viewer will notice that the list lacks some of the largest cryptocurrencies in terms of market capitalization: Ripples XRP is also sought in vain, as is Stellar Lumens (XLM). What these coins have in common is the fact that they are already completely mixed. Why is this, Anthony Pompliano of Morgan Creek Capital told Forbes:

“If there is one central party that owns 30 percent or more of the offer, we exclude it from the index.”

IOTA and Cardano are also out of the game. These do not meet the company’s criteria with regard to the custody regulations. Nor has VeChain been considered in the creation of the portfolio. The reason: The token designed for the use case “logistics” is traded almost exclusively on the crypto exchange Binance and thus contradicts the claim of the fund to avoid high trading concentrations.

image by shutterstock

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