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The cryptocurrency manager Morgan Creek Digital is betting $ 1 million on its cryptographic fund that will outperform the S & P 500, calling the Buffett Bet 2.0 challenge to imitate the famous bet of the billionaire investor. The bet should be taken by "someone who is bullish on the S & P 500, or someone who thinks that cryptocurrencies are worthless or over-valued".
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Recreate Buffett's bet
<img class = "size-medium wp-image-256958 alignright” title=”Buffett Bet 2.0: Asset Manager Wagers Cryptocurrency Fund will beat S & P 500″ src=”https://news.bitcoin.com/wp-content/uploads/2018/12/mc-300×71.png” alt=”Buffett Bet 2.0: Asset Manager Wagers Cryptocurrency Fund will beat S & P 500 "width =" 300 "height =" 71 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/mc- 300×71 .png 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/mc-696×166.png 696w, https://news.bitcoin.com/wp-content/uploads/2018/ 12 /mc.png 739w "sizes =" (maximum width: 300px) 100vw, 300px”/>Morgan Creek Digital is recreating Warren Buffett's famous $ 1 million bet. However, "unlike the famous value investor, Morgan Creek bets against S & P and relies on the decades-long performance of cryptocurrencies," Cnbc said on Thursday.
Anthony Pompliano, co-founder and partner of Morgan Creek Digital, said:
Anyone coming up from the other side will probably be someone with the same perspective as Buffett. It will be someone who is bullish on the S & P 500, or someone who thinks that cryptocurrencies are worthless or overvalued.
<img class = "wp-image-256952 size-medium alignright” title=”Buffett Bet 2.0: Asset Manager Wagers Cryptocurrency Fund will beat S & P 500″ src=”https://news.bitcoin.com/wp-content/uploads/2018/12/buffetts-bet-300×300.png” alt=”Buffett Bet 2.0: Asset Manager Wagers Cryptocurrency Fund will exceed S & P 500 "width =" 300 "height =" 300 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/buffetts- bet -300×300.png 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/buffetts-bet-150×150.png 150w, https://news.bitcoin.com/wp-content/ uploads /2018/12/buffetts-bet-768×768.png 768w, https://news.bitcoin.com/wp-content/uploads/2018/12/buffetts-bet-1024×1024.png 1024w, https: // news. bitcoin .com / wp-content / uploads / 2018/12 / buffetts-bet-696×696.png 696w, https://news.bitcoin.com/wp-content/uploads/2018/12/buffetts-bet-1392×1392.png 1392w, https://news.bitcoin.com/wp-content/uploads/2018/12/buffetts-bet-1068×1068.png 1068w, https://news.bitcoin.com/wp-content/uploads/2018/12 / buffetts-bet-420×420.png 420w, https://news.bitcoin.com/wp-content/uploads/2018/12/buffetts-bet.png 1600w "sizes =" (maximum width: 300px) 100vw, 300px”/>Buffett made a $ 1 million bet using his money against the Protégé Partners wealth manager in 2007. He bet that a passive investment in the S & P 500 would outperform a sample of five managed hedge funds actively selected by Protégé Partners . "Buffett won that bet in 2017, with the S & P of about 7 percent worsened annually compared to a 2.2 percent from hedge funds," wrote the publication.
Calling the "Buffett Bet 2.0" challenge, Morgan Creek Digital is inviting anyone who believes that the S & P 500 can outperform its index fund in a decade to take the other side of the bet, the detailed press release. The million dollars of the company will be financed by its partners. Pompliano said that the intention is that the winner will donate the proceeds to charity.
Crypto Fund Vs. S & P 500
<img class = "size-medium wp-image-256964 alignright” title=”Buffett Bet 2.0: Asset Manager Wagers Cryptocurrency Fund will beat S & P 500″ src=”https://news.bitcoin.com/wp-content/uploads/2018/12/trading-btc-300×243.png” alt=”Buffett Bet 2.0: Asset Manager Wagers Cryptocurrency Fund will exceed S & P 500 "width =" 300 "height =" 243 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/trading- btc -300×243.png 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/trading-btc.png 445w "sizes =" (maximum width: 300px) 100vw, 300px”/>Morgan Creek is betting that its Digital Asset fund will outperform the S & P 500 index over a 10-year period beginning January 1, described Cnbc. The fund, available to US accredited investors, requires a minimum investment of $ 50,000, a 2% management fee and can be repaid monthly with 15 days notice. Its keeper is Kingdom Trust.
Pompliano explained that this indexed fund has been structured to offer an exposure similar to S & P 500, but with cryptocurrencies. It was launched in collaboration with Bitwise Asset Management. Bitwise also operates three other cryptographic funds, two of which were launched on Wednesday.
The Digital Asset Fund is repeating the Morgan Creek Bitwise Digital Asset index. Its 10 constituents starting from August 27 are BTC (77.5%), ETH (11.1%), BCH (2.4%), LTC (2.3%), EOS (2.2%), ZEC (1.0%), XMR (1.0%), DASH (0.9%), IOTA (0.7%) and NEM (0.7%).
<img class = "size-full wp-image-256971 aligncenter” title=”Buffett Bet 2.0: Asset Manager Wagers Cryptocurrency Fund will beat S & P 500″ src=”https://news.bitcoin.com/wp-content/uploads/2018/12/constituents.png” alt=”Buffett Bet 2.0: Asset Manager Wagers Cryptocurrency Fund will beat S & P 500 "width =" 980 "height =" 399 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/constituents. png 980w, https://news.bitcoin.com/wp-content/uploads/2018/12/constituents-300×122.png 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/ constituents -768×313.png 768w, https://news.bitcoin.com/wp-content/uploads/2018/12/constituents-696×283.png 696w "sizes =" (maximum width: 980 px) 100vw, 980px”/>
Pompliano was further quoted by Bloomberg saying:
Bitcoin and Crypto activities have been the most effective resource in the last 10 years … They have beaten the S & P 500 and we believe they will continue to do so for the next 10 years.
What do you think of the Morgan Creek Digital bet? Do you think that the cryptography will exceed the S & P 500? Let us know in the comments section below.
Images courtesy of Shutterstock and Morgan Creek Digital.
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