Morgan Creek and Exos apply to the SEC for Bitcoin funds
The new Bitcoin Fund is designed to provide institutional investors with easier access to Bitcoin.
Morgan Creek Capital Management and Exos Financial have jointly filed a new Bitcoin (BTC) based investment fund with the US Securities and Exchange Commission (SEC). If approved, the fund would provide institutional investors with Bitcoin Millionaire another vehicle to invest in Bitcoin without having to hold the crypto-currency itself and expose themselves to its volatility.
As Kevin Rooke reported yesterday Friday, the „Morgan Creek-Exos Risk Management Bitcoin Fund“ has been officially filed with the SEC. The fund will allow direct investment in the market-leading crypto-currency, while incorporating mechanisms to reduce the allocation to Bitcoin when the signs turn negative.
To this end, Rooke explains that the investment fund „fully handles the technical details of trade, transaction and custody of Bitcoin“, which in turn saves institutional clients a huge amount of effort.
In the accompanying marketing materials, Exos states that institutional investors want to invest in Bitcoin without having to deal with the volatility of the crypto currency and its technical characteristics. This market gap is now to be closed with the fund.
Accordingly, Exos writes:
„The Fund places the entire allocation on Bitcoin as long as the indicators are positive and reduces the position or closes it as soon as the indicators become negative“.
Morgan Creek is an asset management company founded by Mark Yusko, whose primary objective is to provide institutional investors with alternative investment opportunities. To this end, the company operates a department specialising in block-chain and crypto-currency investments.
Exos is in turn a business-to-business platform offering equity investments, corporate financial services and asset management
The increased emergence of so-called „on ramps“ is the literal ramp to the crypto market for institutional investors. The corresponding investment funds, derivatives and ETFs are likely to be the driving force behind the current boom of Bitcoin & Co.
The rising adoption in the mainstream has also been helped by the advocacy of renowned investment gurus such as Paul Tudor Jones and Stanley Druckenmiller, both of whom are invested in Bitcoin.
More and more companies are also venturing into the market-leading crypto currency. According to estimates, companies now own just under 842,229 BTCs, which is currently equivalent to US$15.7bn.