Morgan Creek Digital is taking things a notch higher with a claim that they are probably the first US pension fund to ever pour money in the digital currency business.
Fairfax County, Va., has two pension plans that are mainstay stockholders in this new venture capital fund worth 40 Million USD, an official statement from the firm has disclosed.
Some other stockholders involve an insurance company, a university endowment and a private organization, according to Anthony Pompliano, founder of Morgan Creek Digital, who did not elaborate on his statement regarding the company’s latest move.
A lot of investing institutes, according to Cryptocurrency supporters would be attracted to virtual money equities due to their variability and massive potential to grow in value, that is caused by freedom in tweaking the system with not enough regulatory bodies.
Digital asset investment
There have been several organizations that the Virginia pension funds has partnered with, as well as Yale University, which is one of the top universities in the US that invests in digital assets.
There are three distinct welfare programs conducted by the Fairfax County Retirement Systems, 2-thirds of them investing in the Morgan Creek Digital fund, according to Pompliano.
One of the Chief Investment Officers of the funds, Katherine Molnar, stated that the underlying technology of Bitcoin, which is used to monitor its transactions, opened a whole new set of tools that would help people solve a complex array of obstacles.
Conventional asset to Crypto
Pompliano said that his new fund is built in such a way that it’s related to a conventional venture capital fund which would then stake in the assets of firms that is involved in the business of Blockchain and digital assets, adding that the fund would also retain a tiny amount of its worth in liquid Cryptocurrencies, much like Bitcoin, which in 2018 lost 3-fourths of its value.
A branch of the investments managing firm Morgan Creek Capital Management, Morgan Creek Digital surpassed its original goal of 25 Million USD for the fund.
Its proposal is that every conventional asset would very soon be turned to Cryptocurrencies at the same time increasing intellectual capital that would make beneficial earnings.
They as well contend that Cryptocurrencies are not in any way related to conventional assets, putting investors in unique risks.
(Jet Encila is a journalist, editor and freelancer writer from the Philippines).