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Morgan Creek Capital Management and Exos Financial unveiled a new Bitcoin (BTC) fund at the United States Securities and Exchange Commission on Thursday. If approved, the fund will offer institutional investors another way to extend the flagship cryptocurrency without the volatility of owning it outright.
Kevin Rooke reported On Friday the Morgan Creek-Exos Risk Management Bitcoin Fund was filed with US regulators. The fund intends to provide direct exposure to Bitcoin with built-in mechanisms to reduce allocation when quantitative signals turn negative.
As Rooke reports, the fund “handles the technical details on trading, transfer and custody of Bitcoin.”
In its initial marketing materials, Exos says there is a need to smooth out market volatility for institutional investors who are not used to the turbulence and highly technical properties of Bitcoin.
According to Exos:
“The Fund will fully allocate capital to bitcoin when its indicators are positive and will reduce or exit its position when its indicators turn negative.”
Founded by Mark Yusko, Morgan Creek provides alternative investment products to institutional investors. The company operates a digital asset division specializing in blockchain technology and Bitcoin investments.
As a business-to-business market platform, Exos focuses on securities, trade finance and wealth management services.
Institutional ramps in Bitcoin and other criptovalute have ushered in a new wave of adoption in 2020. The cryptographic funds, derivatives and products traded on exchanges have stimulated a new parabolic trend in the price of Bitcoin.
Growing mainstream adoption has been aided by massively bullish demands from legendary investors like Paul Tudor Jones and Stanley Druckenmiller, both owners of Bitcoin.
In addition to the adoption by investors, the companies have also been betting on Bitcoin this year. Corporate treasuries are estimated to hold approximately 842,229 BTC, which equates to $ 15.7 billion in present value.
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