Investment firm Morgan Creek Digital today teamed up with Bitwise Asset Management Fund Inc. to create a new cryptocurrency fund designed for institutional investors.

Called The Digital Asset Index Fund, the fund holds investments in the top ten cryptocurrencies based on their market share. At launch, bitcoin holds nearly 70 percent of the index’s shares, followed by Ethereum at 15.4 percent and Bitcoin Cash at 5.5 percent.

There are grounds to skip some of the top 10 cryptos, because all must “pass rigorous, rules-based eligibility requirements including custody qualifications, trade concentration limits and pre-mine restrictions to qualify for inclusion,” the fund said in a statement.

One cryptocurrency missing is Ripple XRP, with the fund saying that it is not included because of concerns over its significant concentration in the ownership.

“If there’s a central party that owns 30 percent or more of supply, then we withhold those from the index because we think that introduces a lot of additional risk that may not be there if it was a more decentralized network,” Morgan Creek Digital partner Anthony Pompliano explained.

For security, all assets will be kept in 100 percent cold storage, with the fund promising annual audits.

“Every investor should be considering an allocation to digital assets right now,” Morgan Creek Chief Executive Officer Mark Yusko said. “Increasingly, institutional investors are coming to us asking for exposure to the space. We wanted to create a vehicle tailored for those investors.”

The fund has a minimum requirement of $50,000 and is limited to accredited investors, including endowments, foundations, pensions, wealthy families and sovereign wealth funds.

Images: Pixabay, Morgan Creek