Morgan Creek Digital provides pension funds for blockchain funds

According to an article published on The Next Web (TNW) on February 12th, the US-based digital asset company Morgan Creek Digital recently raised $40 million in funding. Based on Forbes funding, these funds will be used to develop the Morgan Creek Blockchain Opportunities Fund, which will invest in blockchain ecosystem projects and virtual currency.

According to TNW, the biggest investment comes from two public pension funds: the Fairfax County Police and the Fairfax County Employee Pension Plan. “Hospital systems, private foundations, insurance companies and university donations” provide additional donations.

According to Forbes, the fund has invested some of its funds in blockchain-based startups such as the Bakkt trading platform and TrustToken, as well as well-known companies such as Coinbase. Up to $4 million can be used to purchase cryptocurrency directly.

Are fund managers full of confidence in the field of passwords and risking people’s retirement plans for digital currencies? In April last year, CNBC published an article speculating that 2018 will be a year in which “global pensions and endowment funds” have invested heavily in cryptocurrency.

In August 2018, the US Securities and Exchange Commission (SEC) issued a formal warning prohibiting the investment of cryptocurrency as the primary means of establishing a retirement fund. The US Securities and Exchange Commission cited investors’ concerns about pension losses due to fluctuations in encryption prices and accidental investment in fraudulent initial coin products.

In December last year, Morgan Creek Digital founder Anthony Popiano was not commented by the US Securities and Exchange Commission. He published a blog post outlining why every pension plan should invest in encryption. Pompliano discusses the financial crisis facing many pension plans and believes that because Bitcoin is a “non-related” asset with an “asymmetric rate of return”, investment in cryptocurrencies may “substantially change the value of each pension fund. Performance, ultimately changing the viability of hundreds of millions of people to retire in the future. “However, he admits that investment encryption is risky, and pension fund managers should only invest in the losses they can afford.

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