Numerous cryptocurrency hedge funds are in operation today. The appeal of Bitcoin and Ethereum can no longer be ignored in the financial sector. Morgan Creek is now in the process of launching the Digital Asset Index Fund in collaboration with Bitwise Asset Management.
Morgan Creek Turns to Cryptocurrency
The year 2018 has been troublesome for Bitcoin and alternative cryptocurrencies. Prices have fallen dramatically, and there is speculation on whether a bull run will again occur towards the end of the year like it did in 2017. Despite these price concerns, there is still a growing interest in both Bitcoin and altcoins. Hedge fund service providers are turning to cryptocurrency over the past few months. The latest firm to do so is Morgan Creek Digital.
The shift to cryptocurrencies is no real surprise. Morgan Creek CIO Mark Yusko is a renowned Bitcoin bull. In his opinion, the firm can expand its presence in the market by exploring these new markets. It allows for products related to pension funds and endowments, among other things, to dip their toe into cryptocurrency investing. By launching the Digital Asset Index Fund, an important first step is taken.
This new venture is coming to market with the help of Bitwise Asset Management. Both firms will grant institutional investors access to different cryptocurrencies. With a minimum investment of $50,000, the fund is designed to attract a lot of users moving forward. It is also based on the Morgan Creek Bitwise Digital Asset Index. This product appears to track the value of Bitcoin, as well as other top cryptocurrencies.
A Positive Sign for Bitcoin
Giving more people exposure to Bitcoin is a bullish sign for the world’s number one cryptocurrency. Despite the focus on BTC as an investment vehicle, it shows interest in Bitcoin is not slowing down. Hedge funds will not introduce new use cases for Bitcoin in terms of using it for regular payments. However, the positive attention from financial service providers can open new doors as more time progresses.
With Morgan Creek on board, cryptocurrency is entering a new era. Financial service providers opposed cryptocurrency for a long time. Thanks to hedge funds, the situation is changing in favor of Bitcoin and altcoins. It is an integral step toward improving overall cryptocurrency acceptance and use. How this will affect the future value of BTC is rather difficult to predict.
Institutional investors are a key demographic for cryptocurrencies. An influx of fresh capital is needed prior to elevating markets to new all-time high values. Accessibility is a key problem to overcome. A hedge fund focused on digital assets can make a world of difference for institutional investors all over the world. Volatile markets tend to attract a lot of money, which can have interesting consequences.
What do you think about Morgan Creek Digital and Bitwise Asset Management creating a cryptocurrency hedge fund? Let us know in the comments below.
Images courtesy of Shutterstock.
