Institutional crypto investment is already here
While a lot of crypto experts worldwide are debating on when and where institutional investment puts its foot into the open door of the crypto market, in the United States it’s already happening.
One of the biggest investment firms in North America, Morgan Creek Capital Management, has announced creation of the U.S. investment fund focused on cryptocurrencies. The fund is called Morgan Creek Digital. According to the founder Anthony Pompliano, two pension funds located in Fairfax County, Va. are anchor investors in a $40 million venture capital fund dedicated exclusively to crypto and blockchain. Additionally, other members of the fund include an insurance company, a university, and a private foundation. According to Pompliano, this new fund’s structure is similar to a traditional venture capital fund. It will be involved in both investing in the equity of blockchain and crypto companies, as well as holding a certain percentage of value in liquid cryptocurrencies, such as bitcoin.
Notably, Morgan Creek Digital has exceeded its original target of $25 million to open a new fund. In their pitch to the investors they stated that eventually all assets would be represented by digital tokens. Additionally, since cryptocurrencies are not correlated to traditional assets, they give investors unique exposures and more attractive returns, Morgan Creek Digital notes.
“The smart money is not distracted by price but looks at the long-term trends, and believes they’re betting on innovation as a great way to deliver risk-mitigated returns,”
Will other pension funds join Morgan Creek?