The venture company Morgan Creek Digital Assets together with Bitwise Asset Management are launching a new cryptocurrency index fund called the Digital Asset Index Fund, aimed to attract institutional investors willing to enter the digital assets market. According to Mark Yusko, the head of Morgan Creek, in the long term the fund should become a new standard for the entire industry.
"We’re fully prepared and feel we’ve built something that institutional investors will find attractive regardless of how the assets are categorized. Whether they’re securities or not," Anthony Pompliano, a founder and a partner of Morgan Creek Digital Assets, said.
The Digital Asset Index Fund offers 10 largest digital assets, ranked by market capitalization. At the moment, the index fund offers such cryptocurrencies as Bitcoin, Ethereum, Bitcoin Cash, EOS, Litecoin, Zcash, Monero, Dash, Ethereum Classic and Omisego. The portfolio of 10 leading cryptocurrencies will be rebalanced on a monthly basis. When recalculating, the market capitalization of digital assets, the technical capability of their safe "cold" storage and trade concentration limits will be taken into account.
In this case, the Ripple and Stellar tokens will not be added to the fund, since their release is carried out through a pre-mine.
"If there’s a central party that owns 30% or more of supply, then we withhold those from the index. Because we think that introduces a lot of additional risks that may not be there if it was a more decentralized network," Anthony Pompliano added.
In general, this news has positively affected the market of cryptocurrencies and has supported their growth.