Buffett Bet 2.0 Investment Fund Puts $1M on Bitcoin to Outperform S&P 500

Buffett Bet 2.0  Investment Fund Puts $1M on Bitcoin to Outperform S&P 500

Asset manager, Morgan Creek Digital, is offering an interesting wager if anyone is willing to take it. Its 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.


Cold Winter

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.


Bad Form

Morgan Creek had better cling to the mantra of past performance is not indicative of future results, however. The last big bet on Bitcoin is just weeks away from losing.

A call option costing $1 million was placed on a bitcoin price of $50,000 at the end of last year. Following a year which saw the price move from $1000 to $20,000, that may have seemed like a safe bet. However, for the contract to be worth anything now, Bitcoin must see an increase of almost the same magnitude in just three weeks.

Lets hope that Morgan Creek Digital has stocked up on rabbits feet, horseshoes, and four-leaved clovers.

Earlier this year, an Australian investor tried to make a $6.3 million bet with Berkshire Hathaway, that Bitcoin would top its share price by 2023. Its not thought that the famously crypto-skeptic company took him up on the offer.

Who will win the bet? Share your prediction below!

Images courtesy of Shutterstock

The post Buffett Bet 2.0 Investment Fund Puts $1M on Bitcoin to Outperform S&P 500 appeared first on Bitcoinist.com.

07.12.2018 / 06:05 9
Buffett Bet 2.0: Asset Manager Wagers Cryptocurrency Fund Will Beat S&P 500 Buffett Bet 2.0: Asset Manager Wagers
Cryptocurrency asset manager Morgan Creek Digital is betting $1 million that its crypto fund will outperform the S&P 500, calling the challenge
Bitcoin Fund Bets $1M That Crypto Will Outperform S&P 500 Bitcoin Fund Bets $1M That Crypto Will
Morgan Creek Bullish On Crypto, Issues $1MBuffett Bet 2.0 Morgan Creek Capital, a juggernaut in investment management, recently saw its
Morgan Creek Digital Makes $1 Million Buffett Bet 2.0 Crypto Wager Morgan Creek Digital Makes $1 Million
Inspired by a bet made by one of the biggest names in traditional investing, Morgan Creek Digital has proposed a $1 million wager of its own. Whereas
New Crypto Index Fund Will Exclude Centralised XRP New Crypto Index Fund Will Exclude
A large proposed digital currency index fund is hoping to attract institutional investors keen to get exposure to the rapidly evolving digital asset
Morgan Creek Launches Digital Asset Index Fund for Institutional Investors Morgan Creek Launches Digital Asset
Morgan Creek Digital, an asset management firm backed by multi-billion dollar investment advisor Morgan Creek Capital Management, has announced the
Ripples XRP Conspicuously Missing from Morgan Creek Cryptocurrency Index Fund Ripples XRP Conspicuously Missing from
Image courtesy of Oracle Times.XRP is among a few notable cryptocurrencies snubbed by the recently launched Morgan Creek Digital Asset Index Fund.
Comments (0)
Add a comment
Comment on