The new Bitcoin fund is intended to give institutional investors easier access to Bitcoin.
Morgan Creek Capital Management and Exos Financial have jointly filed a new Bitcoin ( BTC ) -based mutual fund with the US Securities and Exchange Commission. Should the fund be approved, institutional investors would have another vehicle to invest in Bitcoin without having to hold the cryptocurrency themselves and expose themselves to its volatility.
As Kevin Rooke reported yesterday Friday , the „Morgan Creek-Exos Risk Management Bitcoin Fund“ has been officially entered into the regulatory body
The fund is intended to enable direct investment in the market-leading cryptocurrency, with mechanisms being integrated at the same time that reduce the allocation to Bitcoin as soon as the signs turn negative.
In this regard, Rooke explains that the mutual fund „takes over the technical details of the trade, transaction and custody of Bitcoin“ completely, which in turn saves the institutional customers an enormous amount of effort.
In the associated marketing materials, Exos states that institutional investors want to invest in Bitcoin without having to deal with the volatility of the cryptocurrency and its technical properties. This market gap is now to be closed with the fund.
Accordingly , Exos writes :
„The fund makes the entire allocation to Bitcoin as long as the indicators are positive, and reduces the position or closes it as soon as the indicators become negative.“
The Morgan Creek asset management company was founded by Mark Yusko and aims to open up alternative investment opportunities for institutional investors. To this end, the company operates a department that specializes in investments in blockchain and cryptocurrencies.
Exos, in turn, is a business-to-business platform that offers investments in stocks, corporate financial services and wealth management.
The increased occurrence of so-called „on-ramps“ is the literal access ramp to the crypto market for institutional investors. The corresponding mutual funds, derivatives and ETFs are probably the driving force behind the current soaring of Bitcoin & Co.
The rise in mainstream adoption has also been fueled by advocacy from well-known investment gurus such as Paul Tudor Jones and Stanley Druckermiller, both of whom are invested in Bitcoin.
More and more companies are venturing into the market-leading crypto currency. According to estimates , companies now own just under 842,229 BTC, which is currently the equivalent of 15.7 billion US dollars.