Venture company Morgan Creek Digital Assets in partnership with Bitwise Asset Management announced the launch of a new investment Fund, excluding, however, several of the most liquid cryptocurrency. Reported by Forbes.
As explained by the representatives of the company in the new Digital Asset Index Fund, in particular, was not included cryptocurrencies with premining.
“If there is a Central party, which owns 30 percent or more of emissions, these assets are not included. We believe that creates a large additional risks, which may not be the case for a more decentralized network,” said founder and partner of Morgan Creek Digital Assets Anthony Pompliano.
In addition to bitcoin and Ethereum, a new index Fund included Cash of Bitcoin, EOS, Litecoin, zcash for, Monero, Dash, Ethereum Classic and Omisego, at the same time, as stated on the website of the company, the first bitcoin accounts for almost 70% of the portfolio.
Among the main criteria assets for inclusion in the index, the company is called market capitalization, technical feasibility of the safe cold storage of assets and the limits of trade concentration.
For example, the investment portfolio has not got IOTA and Cardano, as they did not satisfy the requirements regarding cold storage, Tezos did not meet exchange requirements, and Vechain – since most of the trades with this asset is the exchange Binance. Also this list does not hit TRON, NEO, the NEM, and ICON.
Among the potential regulatory risks associated with centralization of crypto-currencies, often called a high probability of market manipulation on the part of holders of token, as well as the risk that the regulators recognize such assets in securities.
However, Anthony Pompliano 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 to categorize assets, be they securities or not,” he added.
Company asset management Bitwise Asset Management, which has helped in the creation of new funds, is headed by the CEO of AngelList Nawal Ravikant. In October 2017, she introduced her first product, Bitwise HOLD10 Private Index Fund.