Harvard, Stanford And MIT Endowments Are Also Investing In Cryptocurrency Funds
At least five prestigious U.S. universities have invested in crypto, suggests a report citing sources close to these institutions.
According to tech news platform Information, these Ivy League universities led by Harvard, have followed in the footsteps of Yale in dipping their feet into cryptocurrency via multi-billion endowment funds.
The others in this top of the chain group are:
- Stanford University
- Massachusetts Institute of Technology (MIT)
- Dartmouth College
- The University of North Carolina.
The report’s author quotes the source as saying that the developments are “a sign” that the crypto asset class was increasingly becoming an acceptable investment tool among institutional investors.
This past week, it was reported that Yale had participated in a $400 million crypto fund.
Heavyweights in the deal are names like Fred Ehrsam, Matt Huang, and Charles Noyes who have a ton of experience in the industry following their time at Coinbase, Sequoia Capital, and Pantera Capital, respectively.
Reliable sources say that these universities are looking to use their endowment funds to invest in various crypto assets and firms as a form of alternative investment.
Harvard controls the largest endowment, reportedly close to $39.2 billion according to returns for the 2018 fiscal year.
Yale University is said to control the second-largest endowment at $29.4 billion. The university holds a portion of the billions in two crypto funds managed by billionaire investor Andreessen Horowitz and Paradigm Crypto Fund
The other institutions in the run to become top crypto investors all appear in the top twenty-five among the wealthiest universities in the U.S in 2017.
Stanford ranks fourth; MIT is in sixth place; while the University of North Carolina and Dartmouth College appear in 21st and 22nd spots, respectively.
More institutions to launch crypto funds
News about the five prestigious universities conjure memories of Mike Novogratz’ prediction about a “herd of institutional investors” flooding the crypto market.
It appears the inevitable is about to happen with regard to the number of global institutions that could find it plausible to invest in the digital asset industry.
The consensus is that, although these institutions have minimal exposure and knowledge of the crypto industry, their involvement is critical to the ecosystem by being capable of driving adoption within the critical educational space.
According to Information’s Jon Victor, it can shift investor sentiment in favor of digital currencies. He wrote:
“Backing from such closely watched institutions could help validate cryptocurrencies, which are still considered too risky by many institutional investors.”
In April, crypto fund manager Ari Paul intimated that several institutions had interest in crypto investments. However, he believed that most of them were waiting on one of the top Universities to lead the way before they followed suit.
Yale’s move seems to have opened the gates, and more could follow in the footsteps of MIT, Harvard, and others. Already, several top institutions around the world offer many blockchain and crypto-related courses that could prove crucial for the industry.
A positive view for cryptocurrency from the leading educational institutions complements a similar sentiment from Wall Street.
In a recent report, investment firm Fundstrat said institutional investors held a more optimistic and bullish view of crypto, more than the crypto enthusiasts.