Speaking about the major shift in investment principle by institutional investors, co-founder of Morgan Creek Digital, a major crypto-first asset management setup, Anthony Pompliano says (@APompliano)
“This morning our team at Morgan Creek Digital announced a new $40 million crypto venture fund anchored by two public pensions. The institutions aren’t coming. They’re already here.”
Marking a definitive step towards cryptocurrency investments and profit-making, two pension funds, in the US are already invested in these digital assets awaiting long term gains.
Morgan Creek Blockchain Opportunities Fund manages over $1.2 billion in assets backing viral-startups such as Bakkt, one of the largest cryptocurrency exchanges, Coinbase at $8 billion valuation. The principle of the asset management fund is “Blockchain technology is being applied in unique and compelling ways across multiple industries. We feel it is important to be opportunistic and are excited to participate in this emerging opportunity.”
Institutions Already in the Market
Pompliano provides significant cryptomarket insight when he states that “the institutions aren’t coming. They’re already here.” He also proposes that blockchain fund will invest in cryptocurrencies, organizations which are building infrastructure in such new spaces.
As part of the crypto investment market scenario, he has been instrumental in setting up a separate $500 million fund for investing in future tokens which can be used in funding works of fine art or real estate.
The crypto-investment expert also states that apart from pension funds, there are several others who are also in the cryptocurrency space. These include – Nasdaq, Stuttgart Boerse, Fidelity, Intercontinental Exchange for blockchain industry. Cryptocurrencies, according to the expert investor, will be part of the pension scenario any time soon without any doubt.
Why are pension funds headed to crypto markets?
It is Pompliano’s contention that institutional investors, especially pension funds are looking beyond the traditional stocks and the regular asset classes given their unattractive returns.
Morgan Creek caters to the needs of such diversifying-funds with appropriate asset class mix products. The asset management fund positions its offerings as a safe and secure hedge for any tumultuous upheavals in the markets. In the unfortunate event that any market falls, the cryptocurrency market is expected to move in the opposite direction and be a life-saving back-up option for retail and institutional investors.
As the blockchain-investing expert explains, “You can take a small amount of capital, you can put it in a nascent industry, you can manage your risk correctly but also get exposure to true innovation.”Leave a comment