Cryptocurrency Skeptics Challenged: $1 Million Bet Crypto Outperforms S&P 500

Morgan Creek Digital Assets issued a $1 million challenge that the fund's cryptocurrency index would outperform the S&P 500 over the next decade.

Founded by Anthony Pompliano and other crypto bulls, the challenge is the perfect opportunity for cryptocurrency doomsayers to "Put their money where their mouth is."

In a press release today, Morgan Creek Digital Assets publicized a bet that the Bitwise index fund of cryptocurrencies-including Bitcoin and altcoins-would outperform the S&P 500, a capitalization-weighted index of 500 of the largest U.S. publicly traded companies.

The bet is open to professional investors who either "Believe cryptocurrencies are worthless," or simply think that "Public equities would be a better investment over the next decade."

The bet is a direct challenge to many in the community who have predicted the Bitcoin and other cryptocurrencies are a Ponzi scheme, a scam, or "Going to zero."

The fund would have exposure to 75 percent of the cryptocurrency market and would churn monthly-changing with each coin's market capitalization-to represent the changing proportions of the market.

Something to keep in mind: it is possible that this bet is a marketing stunt used to drum up interest for the firm's crypto fund.

The challenge is structured as a 'Buffet Bet' 2.0, a nod to Warren Buffet's bet of $1 million that S&P index funds would outperform a selection of actively managed hedge funds.

Warren Buffet won the bet handily, with the S&P 500 returning 7.1 percent interest compounded annually, compared to 2.2 percent with the selection of hedge funds.

Other than the challenge, the press release did not mention any other details surrounding the bet.