An Asset Manager Is Making A Big Bet On Bitcoin #Morgan_CreekDecember 6, 2018
Bitcoin and cryptocurrency asset manager Morgan Creek Digital reckons its Digital Asset Index Fund, which tracks 10 major cryptocurrencies including bitcoin, ethereum, bitcoin cash, and litecoin, will outperform the S&P 500 (SPX) over the next 10 years.
Anthony Pompliano, co-founder and partner at Morgan Creek Digital, is so confident of bitcoin’s future that his firm is willing to put up a $1 million wager that these cryptocurrencies will prove to be a better investment than the biggest U.S. stocks and shares—if anyone is willing to take Morgan Creek on.
The bitcoin investing firm has branded the challenge “Buffett Bet 2.0″ in reference to the legendary investor Warren Buffett’s famous $1 million bet that the S&P 500 would outperform a selection of hedge funds over 10 years.
Morgan Creek partners are personally funding their side of the bet and won’t be using cash from the fund, though have not put in place any guarantees they will follow through with the bet if they can find a taker.
Pompliano has reportedly said the plan is for the proceeds of the wager to be donated to charity, no matter which side wins.
The bitcoin price peaked late last year after an epic bull run.CoinDesk
“This is a combination of our outlook not only for the upside of cryptocurrencies but also the outlook on public equities,” Pompliano told CNBC.
Public equities aren’t exactly at their all-time highs either.”
U.S. stocks have been falling recently as the oil price sinks and concerns over global growth mount.
Worryingly for Morgan Creek, however, one of the biggest-ever bets on bitcoin looks close to losing.