Morgan Creek Capital Management and Exos Financial filed an application to set up a new Bitcoin ( BTC ) fund with the US Securities and Exchange Commission (SEC) on Thursday. If accepted, the fund would give institutional investors another way to buy BTC without having to worry about volatility as if they owned it outright.
The news was tweeted by investor Kevin Rooke on Friday, who said the Morgan Creek-Exos Risk Management Bitcoin fund had been submitted to US regulators. The new fund intends to provide direct exposure to Bitcoin using built-in mechanisms to reduce allocation when quantitative signals turn negative.
According to Rooke, the fund “handles the technical details surrounding Bitcoin trading, transferring and custody”.
In its initial marketing documents, Exos said there was a need to soften market volatility for institutional investors who were unfamiliar with the chaos and high technical characteristics of Bitcoin.
According to Exos:
“The fund will fully allocate capital into bitcoin when its metrics are positive and decrease or exit a position when its metrics turn negative.”
Founded by Mark Yusko, Morgan Creek offers alternative investment products to institutional investors. The company operates a set of digital assets specializing in blockchain technology and Bitcoin investments.
As a B2B marketplace platform, Exos engages in securities services, trade finance, and asset management.
The increased influx of institutional investors into Bitcoin and other cryptocurrencies ushered in a new wave of adoption in 2020. Crypto funds, derivatives, and swaps The exchange (ETP) has fueled a new parabolic trend for Bitcoin’s price.
The growing mainstream adoption has been supported by massively bullish calls from legendary investors like Paul Tudor Jones and Stanley Druckenmiller, both of which own Bitcoin.
In addition to investor adoption, corporations have also included Bitcoin in their portfolios this year. It is estimated that public companies currently hold around 842,229 BTC, which equates to $ 15.7 billion in today’s value.