It hasn’t been a particularly fun year for Bitcoin and the rest of the cryptocurrency marketplace, but that doesn’t mean the future isn’t bright — sentiment reportedly shared by institutional investors.In fact, institutional investors, endowments, pension funds, and family offices are all interested in getting their hands on digital assets, according to Morgan Creek Capital Management Chief Investment Officer Mark Yusko — who told CNBC that the bear market has offered a “more rational way to evaluate cryptocurrencies.” As reported by the business and financial news television channel, Morgan Creek Digital and Bitwise Asset Management have teamed up to expose institutional investors to a collection of top cryptocurrencies. Called the Digital Asset Index Fund, the minimum investment is $50,000. The Digital Asset Index Fund will track the Morgan Creek Bitwise Digital Asset Index (MCBDAI), a new index.
Where Are All The Institutional Investors?“Institutional investors” has arguably been the primary buzzword in the cryptocurrency and blockchain space this year. At Consensus 2018, one may be forgiven for believing that the whole conference was dominated entirely by talk of onboarding institutional investors — which has yet to happen, as security, safety, regulation, and volatility remain primary concerns to institutions unwilling to put their funds at risk. Morgan Creek aims to tackle these concerns head-on and become “the trusted advisor in the digital world” by offering third-party storage in offline cold wallets.
Too VolatileSecurity is one thing. Volatility, however, is something else entirely. The cold, hard fact remains that institutional investors are not keen on entering a marketplace which has seen its first and foremost product experience a more than 50 percent drop in 2018. Altcoins, of course, have fared even worse. That said, once the bottom is official in, the chances that institutional investors will eagerly try to catch the next major bull run increase substantially — and prices will likely reflect that. Yusko himself is particularly bullish, calling for Bitcoin to reach $500,000 per coin in a matter of years. What do you think about Morgan Creek Digital’s and Bitwise Asset Management’s Digital Asset Index Fund? Do you think institutional investors are readying themselves to enter the cryptocurrency market? Will Bitcoin ever reach $500,000 per coin? Let us know your thoughts in the comments below!
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