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First US Public Pensions Invest in $40M Cryptocurrency Fund

First us public pensions invest in $40m cryptocurrency fund

First US Public Pensions Invest in $40M Cryptocurrency Fund

A brace of public pension funds is backing a $40 million venture-capital fund established by Morgan Creek Digital which focuses on cryptocurrency investments. This development marks the first ever involvement of U.S. pension funds in the virtual currency investment space.

Pension Funds Anchor $40M Cryptocurrency Investment

Morgan Creek Digital announced on Tuesday (February 12, 2019) the launch of a $40 million cryptocurrency venture fund anchored by two public pension funds.

According to the announcement, the Fairfax County Employee’s and Fairfax County Police Pension Plans are the two largest investors in the fund.

Both pensions manage an asset portfolio worth about $1.2 billion. They are also the first ever public retirement fund to invest in cryptocurrencies, a notable milestone for the burgeoning industry.

First us public pensions invest in $40m cryptocurrency fund

Speaking to Bloomberg, Morgan Creek Digital founder, Anthony Pompliano revealed that the fund would invest in blockchain startups and cryptocurrencies. Already, the new fund has investments in notable companies like Bakkt and Coinbase.

Currently, there is no public disclosure of the investment terms, but Pompliano did indicate that the fund is a special purpose vehicle (SPV). Also, reports suggest that apart from equity investments in crypto-based companies, the fund will retain a portion of its value in cryptocurrencies like bitcoin 00.

Institutions ‘Already Here’

Many crypto critics usually never fail to bring up the absence of public pension funds in the virtual currency investment arena. Back in January, JPMorgan analysts repeated the same rhetoric as part of their “bitcoin is only valuable in a dystopia” narrative.

The significance of these two public pension funds taking the plunge can potentially hold profound ramifications for the industry as a whole. Usually, critics attribute the reticence of pension funds in investing in cryptocurrency to issues related to manipulation, volatility, lack of security, among others.

In late 2018, the Morgan Creek Digital partner called on public pension funds to pivot towards the cryptocurrency and blockchain technology market. According to Pompliano, cryptos could serve as a viable hedge for such funds against what he called an “impending US pension crisis.”

For Pompliano, the news is a massive win for cryptocurrency, saying “the institutions aren’t coming. They’re already here.”

During the interview with Bloomberg, the Morgan Creek Digital founder also said:

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.

Do you think this development will vastly enhance the pedigree of cryptocurrencies in the eyes of other reticent mainstream investors? Let us know your thoughts in the comments below.

Image courtesy of Twitter (@APompliano), Shutterstock

Published at Tue, 12 Feb 2019 14:00:44 +0000

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Bitcoin Price Rebounds Over 10% But It’s Not Why You Think

The wonderful world of bitcoin is a fascinating online roller coaster ride. What the mainstream calls “volatility” we call a time for “Hodl.” bitcoin price resumed it’s upward volatility on Monday into Tuesday morning, gaining over 10%, and I’m going to tell you why.

bitcoin PRICE GAINS ON WEAKER DOLLAR

bitcoin price rebounded sharply entering the final week of March and it really had nothing to do with bitcoin. The greater economic markets were the key to bitcoin’s success as the U.S. Dollar took a beating yesterday. This was largely in reaction to the health care vote debacle late on Friday afternoon, when President Trump had to pull the new health care proposal of Paul Ryan for not having enough votes to pass.

This occurred too late on Friday for the market to react, so this carried over to Monday morning when the U.S. Dollar reached a four-month low, the Dow Jones dropped to its lowest point since 2011, and the USD crashed compared to every major currency, CNY, Euro, and yes, bitcoin.

The USD’s market weakness means dollars can buy fewer Bitcoins, so bitcoin value increases against the USD, which is what the bitcoin price represents. bitcoin rose from about $950 USD to over $1,060, as of this writing.

bitcoin price

THIS IS HOW IT WORKS FOR YOU

As I went over in a previous article, Why bitcoin Price Will See Huge Gains For The Next 10 Years, one of the main reasons bitcoin is going to gain value over time is the inherent weaknesses in the greater economic market, which is based on debt.

The U.S. Dollar market is the most influential and strongest financial market in the world, and when Janet Yellen raises interest rates by twenty-five basis points, the economy goes into a tailspin. This should show you how weak the other markets are if the U.S. financial system is this fragile. bitcoin price will take advantage most of the time, and there is plenty of economic turmoil coming down the pike.

Beating the Dollar Using Circle

Another market condition that should be taken note of is the fall in the value of altcoin Dash, which has fallen more than 10% over the last 36 hours, almost the exact same time bitcoin started to rally. 

Dash and bitcoin clearly have an inverse relationship. As one gains, the other falls, and if people see bitcoin on a run, they pull their Dash to get in on the action. A smart investor will take advantage of these relationships and market forces in the future. Dash being an economic hedge against bitcoin is not a bad place to be. Robin was pretty damn famous in his day, and beyond.

*     *     *     *    *

ONE CHAPTER CLOSES; ANOTHER BEGINS

In an aside, I will no longer be writing articles for Bitcoinist after today. I will be moving back to the United States to build my million-dollar consulting business, Smart Beta Consulting, from this point forward. SBC will focus on bringing high-net-worth individual investors in the U.S. and Canada into the digital currency fold, trading fiat currency for global decentralized currencies like bitcoin and Ethereum.

If you know an avid investor who is looking to get started with bitcoin, feel free to send them over. They can do it. Smart Beta Consulting can help.

In closing, no matter where I roam, you can bet your last Satoshi I will be working to help someone learn more, buy more, and do more with “The Future of Money”. This is what I have been doing for the last three years of my life, and I will continue to do it until I can do it no longer. Thank you for your support of me and Bitcoinist. We all appreciate it and we do this work for you, the bitcoin community.

Take care and I’ll see you on the moon!

At what price will bitcoin stabilize? Share your thoughts below!

Image provided by bitcoin Average, Shutterstock

The post Bitcoin Price Rebounds Over 10% But It’s Not Why You Think appeared first on Bitcoinist.com.

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bitcoin Analysis – Do We See a Small Bounce?! Previous analysis scenarios have played out nicely – the price got a break below the counter-trendline and as expected, the price has slowly decreased the value. […]

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