U.S based Morgan Creek Digital has reportedly scored $40 million, led by two major US pension funds. As a matter of fact, this is the first investment by a US pension fund into the crypto industry. Morgan Creek Digital is a hedge fund that has launched a Blockchain opportunities fund to invest in the digital asset industry.
Morgan Creek Investment Sources
The funding was sealed from two benefit plans of the Fairfax County Retirement Systems. Notably, the two major contributors of $40 million are Fairfax County Employee’s Pension and Fairfax County Police Pension Funds. Initially, the investment was pegged at $25 million; however, it increased due to an overwhelming interest of the investor. The other participating investors were a university endowment, a private foundation and an insurance company.
Moreover, a blog post by Anthony Pompliano, Founder and Partner at Morgan Creek Digital, facilitated an agreement with the pension funds. The post emphasized on the importance of Bitcoin in the pensions sector. Considering this, Pompliano stated further,
“The fundraising for this fund didn’t happen overnight, so it definitely took place before that article was written. We also have invested a material amount of the fund to date already.”
Also, he stated in his blog, that Bitcoin has the potential to save US from the ongoing pension crisis. Furthermore, the first move by one or two courageous individuals can make a major difference. Expanding on this, he wrote in his blog,
“It will take time for pension funds to get comfortable with investing in Bitcoin. We need to educate multiple stakeholders and demystify this nascent industry. When one makes the decision, it will create a cascading effect that leads to hundreds of them jumping in.”
Investing in Crypto
Morgan Creek Digital Assets will mostly invest in cryptocurrency and other digital assets, as seen in its Digital Asset Index Fund. Currently, the index consists of Bitcoin, Litecoin,Ethereum, EOS, and BitcoinCash and five other coins. Previously, it had made equity investments in Coinbase, BlockFi, Bakkt and RealBlocks.