An investment manager in the United States claims that it has become the first cryptocurrency firm to have raised money from a pension fund.
Morgan Creek Capital says its new venture capital fund, Morgan Creek Digital, will invest in digital assets and has secured the backing of two pension funds in Fairfax, Virginia.
According to a Bloomberg report, Fairfax County Retirement Systems manages three different pension plans, two of which are invested in Morgan Creek Digital.
The firm told Bloomberg that it sees particular opportunity in bitcoin as it offers an “attractive asymmetric return profile.’’
Morgan Creek Digital initially sought to raise $25 million in funding but, having now raised approximately $40 million, has far surpassed that number.
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Bitcoin and blockchain
Though the Fairfax-based retirement fund may see opportunity in bitcoin, Morgan Creek Digital won’t just be putting its cash into cryptocurrencies.
The firm said that it also sees opportunity in companies that are building blockchain-based products. And though many of those will probably use tokens or cryptocurrency of some description, it’s not necessarily the case that all of them will.
“There’s a belief in the institutional world that if the industry will be around for a long time, it will be very valuable,’’ Pompliano told Bloomberg. “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.’’
Morgan Creek Capital is not the only firm to set its sights on blockchain developers.
In the past couple of years a mix of venture capital and hedge funds, such as Eterna Capital, have been set up that focus exclusively on investing in cryptocurrency,