Major league university endowments have started investing in Cryptocurrencies. At least five universities have invested in Cryptocurrency funds including Harvard University, Stanford University, MIT, Dartmouth College and the University of North Carolina.
Recently Blockmanity reported that Yale universities endowment had invested in two of the Crypto funds: Andreessen Horowitz’s inaugural fund and Paradigm by Coinbase founder.
Now as reported by The Information, at least five other universities have also invested in Crypto funds. The publication cites an unnamed source suggesting that the universities have invested tens of Millions of dollars in Crypto funds, which invest both in Cryptocurrencies directly as well as equities in Crypto companies.
Yale’s endowment is size is over $29 Billion, which is the second largest behind Harvard. Even though they may have invested only a very small portion of this fund, it gives a green signal to other endowments to enter this space.
Jon Victor, Journalist at The Information who reported it says:
“A move by endowments into funds that will directly bet on cryptocurrencies signals a major shift in investor sentiment toward the asset class, in the same way that institutions over the past decade became more willing to invest in private tech companies. Backing from such closely watched institutions could help validate cryptocurrencies, which are still considered too risky by many institutional investors.”
Many industry experts have suggested that the next bull run will be fueled by institutional FOMO (Fear Of Missing Out) instead of retail FOMO back in 2017. Although individuals from Wall Street have gotten skin in the game, the major league institutional funds are yet to enter the market.
It is more likely to happen over time as the industry matures and more infrastructure is built, but it is a good sign to see reputed educational institutions like Harvard and MIT getting skin in the game.
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