Despite the latest meltdown in the crypto market, some players continue to remain heavily bullish about its future. Morgan Creek Digital, the institutional asset manager for cryptocurrencies has put a new $1 million USD bet.
Morgan Creek says that its Digital Asset Index Fund will outperform the S&P 500 Index in the next 10 years, starting Jan. 1st, 2019. This crypto investing giant is betting against anyone who thinks cryptocurrencies are “worthless.”
Buffet Bet 2.0 Challenge
Morgan Creek calls its million-dollar bet as the “Buffet Bet 2.0” challenge. This is because it echoes the bet by investing-guru Warren Buffet made in 2008 during the financial crisis. Buffet had also put a $1 million bet saying S&P would outperform many hedge funds within a decade post-2008.
Morgan Creek Digital Co-founder and partner, Anthony Pompliano, says that someone betting against them will have the same outlook as that of Buffet. Earlier this year, Buffet called digital currencies as “rat poison squared.”
Warren Buffet is an ardent critic of Bitcoin and cryptocurrencies in general who thinks that they are overvalued and worthless.
However, Pompliano has made it clear that the intention for this bet is that the winner will be donating the proceeds to charity.
Pompliano Explains His Bullish Bet on Crypto Market
In a phone interview with CNBC, Pompliano explains why his company is so ultra-bullish on the crypto market.
“This is a combination of our outlook not only for the upside of cryptocurrencies but also the outlook on public equities. A lot of people might look at this and just think we’re bullish on crypto — but you need to look at what asset we’re going up against. Public equities aren’t exactly at their all-time highs either.”
Pompliano points out the recent crash in the tech stocks over the last month. The once all-time favorites of investors’ lost heavily last month on the Wall Street indices. Facebook led the plunge of the tech sector slashing its market cap 24% year over year. However, this is still quite less in comparison to the crypto market plunge over the last year.
While the crypto market deepens the concerns of the investors with every fall, some financial institutions continue to show confidence in it. The first half of 2019 is likely to be exciting as big players like ICE and Nasdaq are launching their crypto products, while on the other hand investors eagerly wait for the arrival of Bitcoin ETF.
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