Stanford, MIT and Others Investing in Crypto

Karan Balwani

October 11, 2018 4:21 pm

Cryptocurrency News

Stanford, MIT and Others Investing in Crypto
3681 Total Views

It has been revealed that multiple universities in the United States have invested in cryptocurrency funds. This goes to show that an increasing number of organizations are showing their interest in the potential of cryptocurrencies.

This news was first reported by The Information. It talked about the fact that world-renowned institutions such as Dartmouth College, Massachusetts Institute of Technology (MIT), Stanford University, Harvard University and University of North Carolina have all invested their funds in at least on cryptocurrency by the use of their respective endowments.

An unnamed source that was familiar with these investments reported that these universities have invested tens of millions of dollars into these funds. The investments include cryptocurrencies and equity in cryptocurrency companies.

CCN had reported that Yale University holds the second largest university endowment, next to Harvard, had allocated a portion of their $29.4 billion in assets into a couple of cryptocurrency funds that are operated by Andreessen Horowitz (a16z) and Paradigm.

Interestingly, even though these investments are in place, these universities still have limited exposure to these kinds of assets classes. The news of these outlets investing in cryptocurrencies could be a boon for the market, bringing more users to the platform.

Jon Victor, Journalist, The Information said

“A move by endowments into funds that will directly bet on cryptocurrencies signals a major shift in investor sentiment towards 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.”

Mike Novogratz had speculated a long time ago that such a “herd” of institutional investors would be responsible behind the bullish status of the Bitcoin market. 

Ari Paul, cryptocurrency fund manager and a former portfolio manager  at the University of Chicago’s endowment had said in April that there are multiple institutions who are looking to invest, but they were waiting for institutions like Yale to make the first move so that they can use it as an “excuse” to do so themselves.

This news was originally published on CCN.

No Comments