Two U.S.pension funds based in Fairfax County, Virginia, have become its anchor investors. According to Bloomberg, they have provided the new venture-capital fund with a certain sum.
Anthony Pompliano, Morgan Creek Digital founder, confirmed the investment. He also said that more investors have jumped onboard. These include an insurance company, a university endowment and a private foundation. He refused to provide details.
Concurrently, he explained that the new fund will resemble a traditional venture capital fund. It will invest in companies which are blockchain and crypto-centered. He also added that the fund will partially hold BTC.
In turn, Katherine Molnar, chief investment officer of one of the pension funds, described blockchain technology as an “emerging opportunity” that offers an “attractive asymmetric return profile.’’
Currently, Morgan Creek Digital holds $40 mln in funds — $15 mln more than it originally wanted.
Deterring or attracting?
Bloomberg notes that crypto enthusiasts often posit that the crypto market draws investors because of potentially enormous gains. However, many have been put off by market manipulation and lack of regulation on behalf of the SEC.
Yet, the two pension funds seem not to mind. Nor does Yale University which also invested a sizeable sum into a digital asset fund last year.
“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.’’