Yale University Invests in $400 Million Digital Asset Fund Paradigm


An October 5 report by Bloomberg has revealed that Yale University has invested in two cryptocurrency funds, helping one of them raise $400 million.

Yale University venturing into crypto investment

Yale University has been known for investing in diverse projects and industries and is now venturing into the cryptocurrency world.

Anonymous sources told Bloomberg that the school, the second-largest higher education institution in the world by endowment, has invested in Paradigm, a cryptocurrency fund.

The hedge fund was founded by Coinbase co-founder Fred Ehrsam, former Sequoia Capital partner Matt Huang, and Pantera Capital veteran Charles Noyes.

The investment by Yale was part of the $400 million raised by Paradigm, which the company would now invest in the cryptocurrency space.

Paradigm is positioned to become one of the largest investment funds in the cryptocurrency space, alongside Pantera, Polychain Capital, and Andreessen Horowitz.

In July, it was reported that David Swenson of Yale invested university funds in Andreessen Horowitz, helping the investment raise $300 million to kick-start its business.

Paradigm is looking to invest in early-stage projects focused on cryptocurrencies, new blockchains, and exchanges.

Yale investment could lead to others coming in

Yale Endowment is currently around a record-breaking $29.4 billion, after posting 12.3 percent gains for the fiscal year that ended on June 30. Over 60 percent of the funds have already been directed into alternative investments.

Yale’s investments could also lead to more institutions coming into the cryptocurrency sector in the near future.

Earlier this year, John Lore, founder of Capital Fund Law Group stated that academic institutions have started investing in cryptocurrencies though on a limited basis due to strategic reasons. He, however, declined to name the institutions.

At this point, it is still unclear how much Yale has invested in Paradigm and a16z, as the university’s endowment branch has yet to confirm the news publicly. The size of the investment most likely doesn’t matter, as the news of Yale investing in crypto could see others come in.

Chief investment officer at cryptocurrency hedge fund BlockTower Capital and former portfolio manager at the University of Chicago’s endowment, Ari Paul, believes endowments would definitely invest in the crypto space.

He stated that the current downturned market is waiting until new buyers are enticed, and even a small dollar amount is legitimizing. Once Yale gets in, it would give other institutions and retail investors an excuse to invest in cryptos.

At the moment, colleges in the US have endowments worth around $550 billion in assets, with Yale holding the second highest behind Harvard.

Leave A Reply

Your email address will not be published.