Summer may not have been kind to cryptocurrency investors. But a newly issued fund may help raise interest.
After all, the U.S. SEC did reject a string of ETFs filed byProShares GraniteShares, and five leveraged and inverse ETFs from Direxion.
All thanks to government agency fear of fraud and manipulation.
However, the arrival of institutional money may help lift their spirits.
Morgan Creek Digital and Bitwise Asset Management announce new fund
Earlier this week, the two announced a new fund aimed at investors like endowments, pension funds and family offices. That’s in an effort to getting institutional investors exposure to a broad basket of cryptocurrencies.
The minimum investment is $50,000. It tracks a new index: the Morgan Creek Bitwise Digital Asset Index (MCBDAI), says CNBC.
“It is just the latest to launch a digital asset fund that allows investors access to an umbrella of digital currencies. Grayscale earlier this year rolled out the Digital Large Cap Fund, also aimed at institutional investors. On its website, Grayscale says the fund lets investors get exposure to digital currencies ‘without the challenges of buying, storing, and safekeeping digital assets.’”
No XRP Allowed
Along with Bitcoin and Ethereum it will include Bitcoin Cash, EOS, Litecoin, Ethereum Classic, ZCash, Monero, Dash and OMG.
However, Ripple and Stellar were not included.
“If there’s a central party that owns 30% or more of supply, then we withhold those from the index,” said Morgan Creek Digital partner Anthony Pompliano, as quoted by Forbes.
“Because we think that introduces a lot of additional risk that may not be there if it was a more decentralized network.”
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