Asset manager, Morgan Creek Digital, is offering an interesting wager if anyone is willing to take it. It’s willing to bet $1 million, that its Bitcoin-focused Digital Asset Index Fund outperforms the S&P500 over the next ten years.
Buffett Bet 2.0
The fund tracks ten major cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin, although the bulk (78%) is Bitcoin. Morgan Creek is so sure of their success, that the partners are putting up the stake themselves.
The wager has been dubbed ‘Buffett Bet 2.0’, after a similar bet made by Warren Buffett, that the S&P500 would outperform a selection of hedge funds over a ten year period. Buffett won that bet, collecting his prize just last year.
Morgan Creek partner, Anthony Pompliano, says the plan is to donate the proceeds to charity, win or lose.
Attention crypto critics….time to put skin in the game 🙂
Morgan Creek Digital believes the Digital Asset Index Fund will outperform the S&P 500 over the next 10 years.
$1,000,000 on the line.
Who will take the other side??https://t.co/10sQt2o2Ce
— Pomp 🌪 (@APompliano) December 6, 2018
The bet comes at an interesting time, as Bitcoin (BTC) 00 and other cryptocurrencies are enduring a prolonged crypto-winter. However, US stocks have also fallen recently, due to a number of concerns over global outlook.
Pompliano explained that the company was not just being bullish on crypto, but that its competition was also not exactly at an all-time high.
This is a combination of our outlook not only for the upside of cryptocurrencies but also the outlook on public equities.
Morgan Creek had better cling to the mantra of ‘past performance is not indicative of future results,’ however.