News

First U.S. Pension Funds Invest $40 million in Cryptocurrency Venture-Capital Fund

Morgan Creek Digital, an affiliate of Morgan Creek Capital Management LLC, has gained its first U.S. pension funds investors which has enabled the company to raise $40 million. In the same vein, organizations like an insurance company, a private foundation, and a university also invested in the cryptocurrency fund, according to Bloomberg’s report on February 12.

Two Pension Funds in Virginia Invest in Cryptocurrency Market

Per the report, Morgan Creek Digital revealed that two pension funds in Virginia are the major investors in a $40 million venture-capital fund. Also, other investors are a university endowment, an insurance company, and a private foundation. The company, on the other hand, has withheld their identities.
Anthony Pompliano, Morgan Creek Digital founder in a phone interview with the media made comments about the investment. He said that the proposed funding was $25 million and as such, what was raised exceeded the expected amount.
The founder added that the fund’s structure is similar to that of a traditional venture capital fund. It will invest in the equity of blockchain and virtual currency companies. The fund will also maintain a minor percentage of its value in digital assets like Bitcoin.

Belief Industry is Valuable if it has Been Around for a Long Time

Pompliano also stated that in the institutional world, people have the belief that the industry will be valuable if it has been around for a long time. Therefore, investments are not really determined by the current market price, but the long term trends. In the founder’s own words:

The smart money is not distracted by price but looks at the long-term trends, and believes they’re betting on innovation as a great way to deliver risk-mitigated returns.’’

Furthermore, the media noted that other reputable institutions asides from the Virginia pension funds have invested in the cryptocurrency market. Notable among them is Yale University, which had invested in a digital assets fund in 2018. Despite this, it has been noted that most institutional investors are reluctant to invest in the crypto space due to its lack of regulation and market manipulation.

Fidelity Investments to Launch Cryptocurrency Platform

Nevertheless, cryptocurrency enthusiasts expect that soon, this will be a thing of the past given that platforms like Fidelity Assets have planned to launch a cryptocurrency custody platform targeted at institutional investors. It is believed that this may give them more confidence to invest in the market and indirectly influence the value of virtual currencies since more money will be in circulation.
As BTCNN reported on February 1, the financial company is currently running the final test of the platform. They also revealed that its launch has been set for March where selected investors from various organizations will be able to take advantage of it.

Related posts
$POWERArtistsBrooklyn 99Cointelegraph.comMichael PeñaNewsRollSocial CurrencyTerry Crews

Funny money: Brooklyn 99 star launches own social currency

Brooklyn 99 star Terry Crews is launching his own cryptocurrency, $POWER, where people can own a piece of him and spend it at the local grocery store. Actor Terry Crews, known for his prominent character in the Brooklyn 99 TV…
AltcoinsNewsNews 1Trading View

How Russia and China are moving forward with their CBDC projects

Among nations in hot pursuit of a digital currency of their own, Russia is in the news again. Its central bank announced plans to start testing a pilot version of the digital ruble by the end of 2022.The post How…
Bitcoin.comBlockchainfake giveawaygiveaway scamsNewsRippleRipple Labsripple lawsuitRipple YoutubeXRPXRP ScamsYouTubeYoutube Ripple

Ripple Settles Legal Dispute With Youtube Over XRP Giveaway Scams

Ripple and Youtube had ended a legal battle initiated in April last year amid allegations related to crypto-related scams. The U.S. blockchain company sued the video platform for negligence in acting against crypto scams that impersonated Ripple. Terms of the…