ambcrypto.com
The idea of cryptocurrency’s union with major financial institutions took another major step forward with the announcement that Morgan Creek Digital has initiated the launch of a $40 million cryptocurrency venture fund which will be supported by two prominent public funds. This recent development will mark the first-ever involvement of U.S. pension funds in the virtual currency ecosystem.
Anthony Pompliano, the founder of Morgan Greek Digital recently made the announcement on social media.
He tweeted,
Source: Twitter
According to the announcement, the two largest investors in the multi-million cryptocurrency fund are the Fairfax County Employees and Fairfax County Police Pension Plans.
The two pension funds manage an asset portfolio with a combined net worth of a whopping $1.2 billion dollars. They have also become the first public retirement fund to invest in virtual assets, setting a new milestone in the crypto industry.
According to reports, the importance of these two public pension funds taking this huge step forward can potentially have profound ramifications for the cryptocurrency ecosystem.
Even though there is no public disclosure of the investment terms, Anthony Pompliano did clearly hint that the fund will be for a legitimate special purpose vehicle [SPV]. The reports further indicated that apart from equity investments in crypto-based companies, the fund will retain a portion of its value in major cryptocurrency, favourably Bitcoin.
The rumour mills regarding public pension funds becoming lenient towards the idea of investing in virtual assets started circulating when CNBC news announced the possibility in April of last year.
The founder of Morgan Creek Digital also rallied public pensions to invest and promote the idea of blockchain space with a blog, in which he indicated that Bitcoin has the potential and capability to save the US from its forthcoming pension issues which he termed as an “impending US pension crisis.”
Talking about institutional interest in the industry at a recent Bloomberg interview, he mentioned,
“There’s a belief in the institutional world that if the industry will be around for a long time, it will be very valuable. The smart money is not distracted by price but looks at the long-term trends, and believes they’re betting on innovation as a great way to deliver risk-mitigated returns.”