Morgan Creek Digital and Bitwise Asset Management have joined forces to introduce the Digital Asset Index Fund, which is aimed at getting institutional investors exposure to a broad basket of cryptocurrencies.

Despite the tumultuous year for bitcoin and other cryptocurrencies, Morgan Creek Capital Management Chief Investment Officer Mark Yusko, a longtime cryptocurrency bull, told CNBC that endowments, pension funds and family offices are increasingly looking for ways to invest in this area.

The fund's minimum investment is $50,000. It tracks a new index: the Morgan Creek Bitwise Digital Asset Index (MCBDAI).

It is just the latest to launch a digital asset fund that allows investors access to an umbrella of digital currencies. Grayscale earlier this year rolled out the Digital Large Cap Fund, also aimed at institutional investors. On its website, Grayscale says the fund lets investors get exposure to digital currencies "without the challenges of buying, storing, and safekeeping digital assets."

Yusko says bitcoin's downturn has provided institutional investors a "more rational way to evaluate cryptocurrencies."

Yusko is sticking by his bullish call on bitcoin, saying the digital currency will reach $500,000 in the coming years. As of Tuesday morning, it was trading around $7,048.

Investors have been waiting for larger firms to dip their toes in cryptocurrency. Security and safety are said to be their main concerns. Morgan Creek said the use of cold storage, where the currencies are stored offline, and third-party custody will alleviate those worries. "We want to be the trusted advisor in the digital world," Yusko told CNBC.

Still, critics say more evidence is needed to confirm whether endowments such as Harvard and Stanford are seriously considering putting money in the digital asset market and are willing to overlook the over 50 percent drop in bitcoin's price this year.

Yusko will be on CNBC's "Power Lunch" today.

Correction: This story has been updated to reflect the correct spelling of Mark Yusko's name.