Morgan Creek Is Betting $1 Million That Crypto Will Outperform Stocks


Digital asset investment firm Morgan Creek Digital Assets is so certain in crypto’s upside that it has placed a $1 million bet that its cryptocurrency index will outperform the S&P 500 over the next 10 years.

The million-dollar gamble is designed to mimic the “Buffett Bet,” where Warren Buffett famously wagered $1 million against asset manager Protégé Partners in 2007. The bet, which Buffett won in 2017, was to prove that passively investing in the S&P 500 would outperform an actively managed hedge fund portfolio over a 10-year period.

“This is a combination of our outlook not only for the upside of cryptocurrencies but also the outlook on public equities,” Anthony Pompliano, co-founder of Morgan Creek Digital, told CNBC. “A lot of people might look at this and just think we’re bullish on crypto — but you need to look at what asset we’re going up against. Public equities aren’t exactly at their all-time highs either.”

Now Pompliano is seeking a counterparty to take Morgan Creek up on the bet. Notably, the Morgan Creek partners have pooled their own capital to fund their end of the wager.

Morgan Creek’s Digital Asset Index Fund tracks the largest digital assets and provides approximately 75% coverage of total digital asset market capitalization. The index is currently down 79.4% YTD while the S&P 500 is up 0.84% over the same period.

More: Cryptocurrency index fund follows Warren Buffett’s playbook, but with a $1 million bet against the S&P

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

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