NEW MORGAN CREEK INDEX EXCLUDES ‘PRE-MINED’ TOKENS LIKE XRP – BUT NOT ETHEREUM
Morgan Creek Capital Management, the investment house with $1.5 billion of assets under its wing, has refused to include Ripple in its new rules-based index fund.
As Forbes reports on the launch day of Digital Asset Index Fund August 28, Morgan Creek has opted to exclude any cryptocurrency with more than a 30 percent premine.
Currently including eight cryptocurrencies to which institutional investors and other parties can now gain exposure, the fund will nonetheless also exclude altcoins such as Stellar $0.22961 -0.68% and in future NEO $20.3202 -1.52% and EOS $5.81314 -0.39%.
“If there’s a central party that owns 30% or more of supply then we withhold those from the index,” Morgan Creek Digital partner Anthony Pompliano told the publication.
Because we think that introduces a lot of additional risk that may not be there if it was a more decentralized network.