Leading U.S. Universities Invest in Cryptocurrency Funds

News and Analysis

Harvard University, Stanford University, Dartmouth College, Massachusetts Institute of Technology and the University of North Carolina have all made investments into a number of cryptocurrency funds. This is what The Information reported on October, 10, citing a person familiar with the developments.

According to the source, this is another sign of the digital asset class’ growing acceptance among institutional investors.

The publication says the afore mentioned five university endowments have invested tens of millions of U.S. dollars in these funds, which in turn invest in both physical cryptocurrencies and equity in cryptocurrency companies.

“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,” the Informarion’s Jon Victor explains.

As stressed by CCN, cryptocurrency investors and analysts including Mike Novogratz had long predicted that a “herd” of institutional investors would power the next Bitcoin bull market.

One of them is Ari Paul, a cryptocurrency fund manager and a former portfolio manager at the University of Chicago’s endowment, who said in April that a number of institutions were interested in investing in cryptocurrency but were waiting for major names such as Yale to make the first move so that they would have an “excuse” to do so themselves.

Notably, though institutional investors are generally viewed as having a more sober view of cryptoassets than retail investors, a recent survey by Wall Street strategy firm Fundstrat found that institutions that have already invested in cryptocurrency are actually more optimistic about bitcoin’s near-term prospects than retail investors.

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