Morgan Creek Digital Assets issued a $1 million challenge that the fund’s cryptocurrency index would outperform the S&P 500 over the next decade. Founded by Anthony Pompliano and other crypto bulls, the challenge is the perfect opportunity for cryptocurrency doomsayers to “put their money where their mouth is.”
In a press release today, Morgan Creek Digital Assets publicized a bet that the Bitwise index fund of cryptocurrencies—including Bitcoin and altcoins—would outperform the S&P 500, a capitalization-weighted index of 500 of the largest U.S. publicly traded companies.
The bet is open to professional investors who either “believe cryptocurrencies are worthless,” or simply think that “public equities would be a better investment over the next decade.”
The bet is a direct challenge to many in the community who have predicted the Bitcoin and other cryptocurrencies are a Ponzi scheme, a scam, or “going to zero.”
For example, Bitcoin pessimist Nouriel Roubini:
Now Bitcoin is again below $8K. Down 60% from its December peak. You HODLers : feel free to jump over the cliff to your financial meltdown…
— Nouriel Roubini (@Nouriel) March 15, 2018
Or Agustin Carstens, general manager of the Bank for International Settlements, a bank for central banks, who called Bitcoin:
“…the combination of a bubble, a Ponzi scheme, and an environmental disaster,” according to CNBC.
Now the naysayers have an opportunity to speak with their wallets.
Details on the Fund
The fund would have exposure to 75 percent of the cryptocurrency market and would churn monthly—changing with each coin’s market capitalization—to represent the changing proportions of the market.
The fund mainly comprises Bitcoin and Ethereum, with smaller stakes in eight other altcoins.