Five more university donation features have invested in cryptocurrency funds, offering that the frontier of institutional investors can now take a place at least a small portion on the nascent asset class. Some of the most prestigious educational institutions including Harvard University, Stanford University, Massachusetts Institute of Technology, Dartmouth College and the University of North Carolina have each invested in at least one cryptocurrency fund via their individual donation features. These five university have invested tens of millions of dollars in these funds which eventually put money into both physical cryptocurrencies and equity in cryptocurrency companies.
According to the news report, Yale University, the second-largest university endowment next to Harvard, has distributed around $29.4 billion in assets into two cryptocurrency funds operated by Andreessen Horowitz (a16z) and Paradigm.
Unfortunately, six Ivy League universities have put efforts to spread out asset class, it is not enough; however, their approaches help the market to legitimize the space.
According to a journalist, Jon Victor, this donations into funds will directly influence as a major shift in investor sentiment to the asset class and institutions will become more motivated to assist private tech companies. It will definitely be helpful to validate cryptocurrency but there is still unsolved concerns about being risky in the perspective of institutional investors.
Cryptocurrency investors and analysts expected that the “frontier” of institutional investors rule the next bitcoin bull market. Ari Paul, a cryptocurrency fund manager and a former portfolio manager at the University of Chicago’s endowment, stated that several institutions were curious about cryptocurrency but were waiting for ‘major names’ such as Yale to take the first movement to have a valid ‘excuse’. Frankly, based on the survey done by Fundstrat, a Wall Street strategy firm, institutional investors are taking a general view on crypto assets than retail investors and they are more optimistic about bitcoin’s short term progress than them, too.
Author: Jieun Lee