XRP and XLM are far too centralized to be included in Morgan Creek’s cryptocurrency index fund, according to Mark Yusko
- The crypto S&P 500
- There is still a chance for XRP
In a recent interview with Thinking Crypto, Mark Yusko, the founder of Morgan Creek Capital Management, mentions that their cryptocurrency index fund excludes XRP and Stellar (XLM) because these assets are “ closely held ”.
“We exclude anything that is too tightly held. So we don’t own Stellar, we don’t own XRP.
He specifies that his hedge fund does not have these assets because a large part of them are centralized controlled companies (Ripple and the Stellar Dedevelopment Foundation, respectively).
The crypto S&P 500
The Digital Asset Index Fund was launched by Morgan Creek Capital in partnership with Bitwise in 2018 to allow sophisticated institutional investors to immerse themselves in crypto.
Currently, the index fund covers 75% of the total market capitalization of the cryptocurrency. It offers exposure to ten digital assets, Bitcoin (BTC) being the main constituent (80.9%).
“ The reason we created the Digital Asset Index Fund the way we did is because we want to be the S&P 500 for crypto. ”
There is still a chance for XRP
Yusko says they are not as freely tradable XRP and Stellar as Bitcoin or Ethereum (ETH).
The American investor does not exclude that Morgan Creek opens its arms for XRP if Ripple changes its distribution model.
“ I’m still struggling with the XRP / Ripple structure, or the way cash flows are created or shared, but that’s a topic for another day. Yes, there is a point at which, if they had sufficient distribution of XRP, they could qualify for the index. “
XRP and XLM are regularly criticized for their strong centralization. As reported by U. Today, they have the highest level of wealth inequality among the major cryptocurrencies.