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Morgan Creek Digital, backed by Morgan Creek Capital institutional investment company with assets under management of $ 1.5 billion, has launched a new digital asset index fund in collaboration with Bitwise, Forbes reports on August 28th.
The new fund will give accredited investors, endowments, pensions and other authorized institutional investors the opportunity to acquire indirect exposure to Bitcoin (BTC), Ethereum (ETH) and other eight large market capitalizations, although not particularly Ripple ( XRP) and Stellar (XLM).
Reportedly, activities like Ripple and Stellar were created through a pre-mine, which means that part of the tokens were created and assigned to the founders or project developers before the sale of tokens was made public . As Morgan Creek Digital member Anthony Pompliano
said to Forbes "If there is a central party that owns 30% or more of an offer, we hold those from the index, [b] because we think it introduces a lot of additional risks that might not be there if it were a more decentralized network. "
This also applies to tokens like TRON (TRX), NEO and NEM, which may in the future be declared excluded for the same reasons.
As Forbes notes, the centralization of some cryptocurrencies involves perceived regulatory risks associated with potentially high vulnerabilities to market manipulation by large token holders. There is also the future possibility that regulators can classify these tokens as securities.
Pompliano told Forbes that he is sure that institutional investors will be interested in the fund regardless of "if [the assets are deemed] titles or not", while the Bitwise co-founder According to reports, Hunter Horsley has confirmed that the decision to excluding the pre-mined activities was based on concerns regarding possible fraud and manipulation, as well as regulatory uncertainties regarding the status of token securities with centralized ownership.
In addition to Bitcoin and Ethereum, Morgen Creek also includes Bitcoin Cash (BCH), EOS, Litecoin (LTC), Zcash (ZEC), Monero (XMR), DASH, Ethereum Classic (ETC) and Omisego. The assets will be held in the fund's weighted market capitalization basket, to be recalculated on a monthly basis.
Starting from autumn 2018, the fund will be supervised by the auditor of Bitwise Cohen & Company, with results published annually starting from the beginning of 2019. [19659002] In addition to the restrictions on coins -minate, Morgan Creek is stipulating custody qualifications, trade concentration limits and cold storage requirements, which disqualifies many others encrypted by the new fund.
Neither IOTA nor Cardano (ADA) meet the cold – precautionary custody rule, while Vechain (VET) – which is reportedly exchanged largely on an exchange, Binance – does not pass the rule of concentration of the exchange.
As Cointelegraph reported, this spring government regulator Gary Gensler argued that Ethereum and Ripple could probably be considered unrecorded securities based on their token pre-sale.
Developments since then have seen the US Securities and Exchange Commission (SEC) establish that Ethereum has now been sufficiently established horizontally through mining to disqualify it from a classification of securities. Ripple continues to face an ongoing lawsuit for allegedly selling non-compliant securities.
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