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Bitcoin Fund Bets $1M That Crypto Will Outperform S&P 500

Morgan Creek Bullish On Crypto, Issues $1M “Buffett Bet 2.0”

Morgan Creek Capital, a juggernaut in investment management, recently saw its crypto-centric subsidiary make an extremely bullish bet on Bitcoin (BTC) and its altcoin brethren. More specifically, according to a report from CNBC, Morgan Creek Digital, headed by Anthony “Pomp” Pompliano, has called for a single investor to take on a hefty bet.

The wager, which has been colloquially dubbed “Buffet Bet 2.0,” sees Morgan Creek tout that its in-house cryptocurrency index fund, which includes all prominent crypto assets, save for Stellar Lumens (XLM) and XRP, will outperform the Standard & Poors’ 500 over the next 10-years.

If the crypto-centric index outperforms the S&P 500, Morgan Creek’s crypto branch expects a $1 million cheque to fly its way. On the other hand, if the equities market undergoes a monumental run, the American investment consortium will fork out $1 million to its opponent. This “Buffet Bet 2.0,” for those who are unaware, is an evident reference to Warren Buffet’s infamous ante, in which the multi-billionaire claimed that a group of hedge funds would outdo the S&P.

Speaking about the importance of this wager, which is more serious than it may initially seem, Pompliano, co-founder of the crypto group, stated:

This [bet] is a combination of our outlook not only for the upside of cryptocurrencies but also the outlook on public equities.

Pomp, known for his anti-bank, pro-crypto rhetoric he incessantly posts on Twitter, then added that while the bet may indicate that Morgan Creek is “just bullish on crypto,” it’s important to put everything, including traditional markets, into perspective. “But you need to look at what asset we’re going up against, the crypto advocate mused, before adding, “public equities aren’t exactly at their all-time highs either.”

More specifically, the former Snapchat and Facebook employee drew attention to the faltering tech industry, specifically targeting the losses sustained by the companies in FANG, which have lost all of 2018’s gains in a matter of weeks.

Morgan Creek’s Pompliano And Yusko Laud Bitcoin

In a testament to Morgan Creek’s love for cryptocurrencies, the $1 million that is being put up for gamble has come from the pockets of the firm’s partners, instead of the in-house fund. Moreover, the unspoken terms of the wager stipulate that the winner will donate winnings to charity, making it clear that Morgan Creek truly believes in crypto assets for their fundamentals, rather than their ability to gain value over the long haul.

This recent development, which comes amid a dismal BTC downturn, comes just weeks after Pompliano and Mark Yusko, the latter being Morgan Creek’s founder, both took to distinct CNBC segments to laud Bitcoin and other cryptocurrencies.

As reported by Ethereum World News previously, Yusko, a prominent American investor, explained to CNBC’s Fast Money that he loves Bitcoin for the long-term, adding that the recent sell-off was catalyzed by artificial selling pressure originating from CBOE and CME’s BTC vehicle. Keeping this in mind, the Morgan Creek founder added that now could be an optimal time for investors to purchase cryptocurrencies.

Not only does he expect for BTC to revisit its all-time highs, but Yusko added that cryptocurrencies, with its asymmetric risk profile, could see a 20x+ rally over the next decade.

Pompliano, an overt cryptocurrency proponent, industry bastion, and colleague of Yusko, also took to Bitcoin’s side on the CNBC Squawk Box panel. Pomp noted that at its core, Bitcoin is the world’s most secure transaction settlement layer, so value in BTC will always exist.

Title Image Courtesy of Jason Briscoe on Unsplash

The post Bitcoin Fund Bets $1M That Crypto Will Outperform S&P 500 appeared first on Ethereum World News.

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Bitcoin Fund Bets $1M That Crypto Will Outperform S&P 500

Morgan Creek Bullish On Crypto, Issues $1M “Buffett Bet 2.0”

Morgan Creek Capital, a juggernaut in investment management, recently saw its crypto-centric subsidiary make an extremely bullish bet on Bitcoin (BTC) and its altcoin brethren. More specifically, according to a report from CNBC, Morgan Creek Digital, headed by Anthony “Pomp” Pompliano, has called for a single investor to take on a hefty bet.

The wager, which has been colloquially dubbed “Buffet Bet 2.0,” sees Morgan Creek tout that its in-house cryptocurrency index fund, which includes all prominent crypto assets, save for Stellar Lumens (XLM) and XRP, will outperform the Standard & Poors’ 500 over the next 10-years.

If the crypto-centric index outperforms the S&P 500, Morgan Creek’s crypto branch expects a $1 million cheque to fly its way. On the other hand, if the equities market undergoes a monumental run, the American investment consortium will fork out $1 million to its opponent. This “Buffet Bet 2.0,” for those who are unaware, is an evident reference to Warren Buffet’s infamous ante, in which the multi-billionaire claimed that a group of hedge funds would outdo the S&P.

Speaking about the importance of this wager, which is more serious than it may initially seem, Pompliano, co-founder of the crypto group, stated:

This [bet] is a combination of our outlook not only for the upside of cryptocurrencies but also the outlook on public equities.

Pomp, known for his anti-bank, pro-crypto rhetoric he incessantly posts on Twitter, then added that while the bet may indicate that Morgan Creek is “just bullish on crypto,” it’s important to put everything, including traditional markets, into perspective. “But you need to look at what asset we’re going up against, the crypto advocate mused, before adding, “public equities aren’t exactly at their all-time highs either.”

More specifically, the former Snapchat and Facebook employee drew attention to the faltering tech industry, specifically targeting the losses sustained by the companies in FANG, which have lost all of 2018’s gains in a matter of weeks.

Morgan Creek’s Pompliano And Yusko Laud Bitcoin

In a testament to Morgan Creek’s love for cryptocurrencies, the $1 million that is being put up for gamble has come from the pockets of the firm’s partners, instead of the in-house fund. Moreover, the unspoken terms of the wager stipulate that the winner will donate winnings to charity, making it clear that Morgan Creek truly believes in crypto assets for their fundamentals, rather than their ability to gain value over the long haul.

This recent development, which comes amid a dismal BTC downturn, comes just weeks after Pompliano and Mark Yusko, the latter being Morgan Creek’s founder, both took to distinct CNBC segments to laud Bitcoin and other cryptocurrencies.

As reported by Ethereum World News previously, Yusko, a prominent American investor, explained to CNBC’s Fast Money that he loves Bitcoin for the long-term, adding that the recent sell-off was catalyzed by artificial selling pressure originating from CBOE and CME’s BTC vehicle. Keeping this in mind, the Morgan Creek founder added that now could be an optimal time for investors to purchase cryptocurrencies.

Not only does he expect for BTC to revisit its all-time highs, but Yusko added that cryptocurrencies, with its asymmetric risk profile, could see a 20x+ rally over the next decade.

Pompliano, an overt cryptocurrency proponent, industry bastion, and colleague of Yusko, also took to Bitcoin’s side on the CNBC Squawk Box panel. Pomp noted that at its core, Bitcoin is the world’s most secure transaction settlement layer, so value in BTC will always exist.

Title Image Courtesy of Jason Briscoe on Unsplash
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Morgan Creek CEO: 20x Bitcoin (BTC) Bull Run Possible Over Next Decade

Mark Yusko: “Bitcoin — I Love It Long-Term”

Early last week, CNBC’s “Fast Money,” somewhat infamous for its coverage of markets, continued its incessant coverage of Bitcoin (BTC), calling upon Mark Yusko of Morgan Creek Capital Management to make a guest appearance. Surprisingly, while Yusko hails from the realm of traditional finance, he expressed that cryptocurrencies are likely to succeed over the long haul.

Opening his comments on the matter, which came after he painted a dreary picture for equity markets, Yusko was straight and to the point, telling viewers that he “loves Bitcoin for the long-term.”

Touching on the arrival of CBOE’s and CME’s BTC futures vehicles, Yusko noted that he totally missed the mark on how these aforementioned contracts would affect this nascent market. He explained that artificial selling pressure (rehypothecation) has been directly placed on BTC, in spite of the fact that said futures aren’t physically-backed. This, of course, was likely said to attribute BTC’s most recent sell-off, which forced the digital asset under $4,000, to a (group of) catalyst(s).

However, he explained that rehypothecation will be phased out of cryptocurrency markets in the future, pending on the adoption of BTC as a viable store of value, which may subsequently catalyze a leg higher. Yusko, further explaining his long-term penchant for Bitcoin, went on to add that $4.6 billion/day in trading volumes is a far cry from the sub-few-hundred million/day seen in the years prior, only accentuating that this industry is flourishing.

‘Buying Today Isn’t A Bad Idea’

Discussing BTC’s most recent decline and a potential bottom, Yusko, the Morgan Creek chief explained that investors “don’t need a very long time horizon at all” to make a nice return on a BTC investment.

This sentiment, which was short, but sweet, has seemingly echoed claims made by other industry insiders on their short-term view on BTC, specifically from an investment perspective.

BlockTower partner Michael Bucella, formerly of Goldman Sachs Canada, recently told the exact same CNBC segment that while he expects for BTC to fall “one leg lower” before bottoming, he expects a subsequent sharp rebound to the upside, which may put short-term speculators well into the green.

20x Upside In BTC Possible Over Next Decade

Returning to his discussion about Bitcoin’s performance over the long haul, Yusko noted that over the next decade, he truly believes that BTC could see a 20x+ upside, adding that crypto, with its asymmetric risk profile, is a rare asset class that can support such a rally.

He explained that when it comes down to the nitty-gritty, Bitcoin is a network, not a currency or company, before adding that the world’s largest corporations are based on networks, not specific products. So, keeping this in mind, he exclaimed:

Networks don’t grow based on economic growth, interest rates, or profits. [Instead,] that grow on technology changes, regulatory changes — we just saw [the SEC’s] Jay Clayton here talking over at Consensus: Invest about how if you break the securities laws, we’re going to punish you. [But] if you don’t, you play in a place like Bitcoin, which we deem a currency. So I think that this [premise] is fantastic.

Yusko’s Colleague, Anthony Pompliano, Also Lauds Crypto, Bitcoin

Yusko’s appearance on Fast Money’s panel comes amid a newfound drive from Morgan Creek, along with other well-known industry savants and startups, to push for positive mainstream coverage of this decade-old, yet ground-breaking innovation.

As reported by Ethereum World News previously, Anthony “Pomp” Pompliano, an overt cryptocurrency advocate, industry bastion and colleague of Yusko, took to Bitcoin’s defense on the CNBC Squawk Box panel, anchored by one seemingly skeptical of cryptocurrencies and their potential.

The former Snapchat and Facebook employee exclaimed that at its core, Bitcoin is the world’s most secure transaction settlement layer, so value in BTC will always exist. He added that cryptocurrencies as a whole are the best performing asset class in the past decade, even ousting the U.S. equities market, which has been on its longest and most notable bull run in decades.

Title Image Courtesy of Mayur Gala on Unsplash

The post Morgan Creek CEO: 20x Bitcoin (BTC) Bull Run Possible Over Next Decade appeared first on Ethereum World News.