Morgan Creek Capital registered a new Bitcoin fund, called the Exos Risk-Managed Bitcoin Fund, with the SEC yesterday. This follows a previous fund, known as the Blockchain Opportunities Fund that raised $70 million.
The private equity fund is designed to provide exposure to Bitcoin, and reduce volatility of returns. In addition—according to the website—the fund will fully allocate capital to Bitcoin based on positive indicators, and reduce or exist its position when indicators are negative. An incentive fee of 20% above Bitcoin return is also applied.
According to the fund website, "Bitcoin has laid the foundation for a new asset class that may become the biggest technological innovation since the internet."
Mark Yusko, founder and CEO of Morgan Creek Capital, recently showed his support for Bitcoin on Benzinga’s PreMarket Prep. "Clearly Bitcoin crushed the S&P in 2019, it has crushed the S&P again this year. This is an asset that most people don’t understand," he said.
Yesterday, Yusko followed this up by taking aim at "zombie companies" that require bailouts during periods of financial stress, describing these entities as "ponzi finance schemes."
"Before people's eyes, you're having your wealth stolen through inflation," Yusko added.
Jason Williams , co-founder of the company's crypto branch Morgan Creek Digital, has also expressed his support for Bitcoin. In October, he sold a 2007 Chevrolet Suburban for 0.4 Bitcoin (now worth $7,500). Yesterday, he said, "Sold it for 0.4 BTC fwiw. Feels like I may have done well. We will see."