Morgan Creek Capital Management and Exos Financial filed a new Bitcoin (BTC) fund on Thursday with the United States Securities and Exchange Commission. If approved, the fund will offer institutional investors another way to trade the flagship cryptocurrency without the volatility of owning it.
Kevin rooke reported The Morgan Creek-Exos risk management Bitcoin fund was filed with U.S. regulators on Friday. The fund intends to provide direct exposure to Bitcoin with built-in mechanisms to reduce the allocation when quantitative signals turn negative.
As Rooke reports, the fund “handles the technical details of Bitcoin trading, transfer, and custody.”
In its initial marketing materials, Exos claims there is a need to smooth 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 offers alternative investment products to institutional investors. The company operates a digital assets division specializing in blockchain technology and Bitcoin investments.
As a business-to-business market platform, Exos is involved in securities, trade finance and asset management services.
Institutional ramps to Bitcoin and other cryptocurrencies ushered in a new wave of adoption in 2020. Crypto funds, derivatives, and exchange traded products have sparked a new parabolic trend in the price of Bitcoin.
The growing mainstream adoption has been aided by massively bullish calls from legendary investors such as Paul Tudor Jones and Stanley Druckenmiller, both owners of Bitcoin.
Beyond investor adoption, companies have also put interests in Bitcoin this year. It is estimated that corporate treasuries hold around 842,229 BTC, which equates to $ 15.7 billion in current value.