Two US public-sector pension funds have reportedly supported a new $ 40-million venture capital fund in the crypto-currency industry. The deal is hailed by some of the most conservative types of investment managers as a vote of confidence in the industry.
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The Morgan Creek Blockchain Opportunities Fund
Anthony Pompliano, Partner at Morgan Creek Digital, the asset management firm backed by Morgan Creek Capital Management, a multi-billion dollar investment advisor, has announced a new $ 40 million crypto risk fund, with two State pensions is anchored. Usually unruly words: "Pomp," as he's known on Krypto Twitter, said, "Institutions are not coming, they're already here."
The two funds that support the Morgan Creek Blockchain Opportunities Fund in particular are the Fairfax County police and the Fairfax County employees' retirement plans. Other participants are reportedly an insurance company, a hospital system, a university foundation fund and a private foundation.
The new fund is structured like a traditional venture capital fund and will invest primarily directly in the equity of companies active in the field of digital assets. However, the fund is also reported to hold a small portion of its capital in cryptocurrencies. Morgan Creek has already invested in companies such as Bakkt, Blockfi, Coinbase, Realblocks, Harbor, Open Finance Network, Cityblock Capital, Namebase, Good Money and Digital Assets Data.
Every pension fund should buy Bitcoin
Morgan Creek Digital has been working for some time to open the crypto currency market for pension funds. In August 2018, the Digital Asset Index Fund was launched to provide endowment, foundations, pensions, high net worth families and sovereign wealth funds with access to broad crypto-investment exposure.
In December, Pompliano wrote in a media post that "every pension fund should buy bitcoin." He explained how this could be done and wrote, "It will take time for the Pension Fund to feel comfortable with investing in Bitcoin, we need to train multiple stakeholders and demystify this emerging industry, and when you make the decision, it will create a cascade effect With hundreds of them coming in. Bitcoin has the potential to save us from the current pension crisis, and we only need one or two brave individuals to take the first step. "
In your opinion, what does this investment of pension funds for the cryptocurrency ecosystem mean? Share your thoughts in the comments below.
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The contribution Two US pension funds support the new $ 40 million Crypto VC, first published by Bitcoin News.