Morgan Creek Digital Assets in partnership with Bitwise Asset Management announced the launch of a new investment fund, excluding several cryptocurrencies.
As representatives of the company explained, the new Digital Asset Index Fund, in particular, did not include cryptocurrencies with pre-rendering.
“If there is a central party that owns 30 percent or more of the issue, we do not include these assets. We believe that it poses great additional risks, which may not be in the case of a more decentralized network, “said Anthony Pompliano, founder, and partner of Morgan Creek Digital Assets.
In addition to Bitcoin and Ethereum, the new index fund includes Bitcoin Cash, EOS, Litecoin, Zcash, Monero, Dash, Ethereum Classic and Omisego, while the first cryptocurrency accounts for almost 70% of the portfolio.
Among the main criteria for assets to be included in the index, the company calls market capitalization, the technical capability of safe “cold” storage of assets and the limits of trade concentration.
For example, IOTA and Cardano did not get into the investment portfolio, because they did not meet the requirements for cold storage, Tezos did not meet the exchange requirements, and Vechain – because most of the trades in this asset are on the Binance exchange. Also in this list did not hit TRON, NEO, NEM, and ICON.
Among the potential regulatory risks associated with the centralization of crypto-currencies, the high probability of market manipulation by token holders is often called, as well as the threat that regulators recognize such assets as securities.
Nevertheless, Anthony Pompliano is convinced that Morgan Creek Digital Assets has created the right product.
“We are fully prepared and feel that we have created something that will be attractive to institutional investors, regardless of how the assets will be classified, whether they will be securities or not,” he added.
The asset management company Bitwise Asset Management, which helped to create new funds, is headed by AngelList CEO Naval Ravikant. In October 2017, she introduced her first product – Bitwise HOLD10 Private Index Fund.