Ripple (XRP) evidently missing from the Morgan Index Cryptocurrency Index Fund

XRP is among the few notorious cryptocurrencies snubbed by the recently launched Morgan Index Digital Asset Index Fund. Despite being a prominent cryptocurrency, Ripple's XRP is no stranger to being overlooked by institutional investment vehicles due to the uncertainty that it is a security token.

XRP and XLM not included in the fund

XRP and XLM (Lumen stars) They were completely missing from the list of cryptocurrency tokens that will be managed by the index fund launched on Tuesday (28 August 2018). Both cryptocurrencies share a lot in common, in particular the fact that both are preminato. Premining refers to a situation where the total token offer of a cryptocurrency is produced at the beginning of the blockchain.

Commenting on the exclusion of the premise cryptocurrencies as XRP and XLM, Anthony Pompliano, a member of the company stated:

If there is a central part that owns 30% or more of offer, then we hold those from the index. Because we think it introduces many additional risks that may not be there if it were a more decentralized network.

There continues to be a lot of controversy over whether XRP constitutes security because of its apparent centralized nature. However, Ripple executives oppose this claim by stating that majority ownership of XRP tokens does not make decentralized cryptocurrency.

While uncertainty remains, Morgan Creek joins a list of important institutional cryptocurrency investment vehicles focused in the United States that have avoided the XRP token.

Details of the Cryptocurrency Index Fund

Writing for Forbes Michael del Castillo highlighted some of the features of the Morgan Index Digital Index Fund. The fund is supported by the Morgan Creek corporate investment firm which currently has $ 1.5 billion in assets under management (AUM).

According to the details released so far, the fund offers institutional investors access to Bitcoin, Ethereum and eight other best cryptocurrency tokens. It is an index-based fund based on rules under the management of Bitwise Asset Management which has signed a partnership agreement with Morgan Creek at the start of the year. Commenting on the progress made so far, Pompliano said:

We are fully prepared and we believe we have built something that institutional investors will find attractive regardless of how the assets are classified. Whether they are titles or not.

Do you think Morgan Creek is right to deny premature cryptocurrencies like XRP and XLM? Where are you in the debate if XRP is a security? Let us know your thoughts in the comments section below.

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