Anthony Pompliano, the founder of Morgan Creek Digital Assets and notable security token advocate, announced today that his firm has launched the Digital Asset Index Fund, a new cryptocurrency investment vehicle targeting institutional investors.
Today we are launching the Digital Asset Index Fund for institutional investors.
— Pomp ? (@APompliano) August 28, 2018
According to the announcement, Morgan Creek has partnered with Bitwise to build and launch the new fund. Bitwise is notable for building the world’s first cryptocurrency index fund, which holds 10 cryptocurrencies weighted by market cap and rebalanced monthly.
Similar to Bitwise’s original fund, the Morgan Creek Index holds 10 cryptocurrencies, which covers 75% of total digital asset market capitalization. However, the constituents were selected based on a number of qualifications, including adequate decentralization, no price-pegging, and no known security vulnerabilities. Morgan Creek also emphasizes that the digital currencies must have “fewer than 30% of its current issuance held by the protocol’s foundation or related operating business.”
Based on the at criteria, Morgan Creek has selected the usual top-10 currencies including Bitcoin, Ethereum, and EOS. It’s interesting to note that Ripple’s XRP is missing and OmiseGO (OMG) made the cut.
In response to questions specifically surrounding the firm snubbing XRP, Pompliano stated,
[XRP] creates additional risks (governance, regulatory, etc) that we don’t want our institutional investors to have exposure to.
Institutional investors can join the fund with a minimum $50,000 investment, and Morgan Creek will charge a 2% management fee. Morgan Creek will store all the funds in cold storage and the firm notes that trading will occur across multiple liquidity venues.
More: Digital Asset Index Fund
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.