From the many droves of institutional investors venturing into crypto, universities have not been left behind. Many universities are considering crypto assets investments as of 2018.
There is an increasing number of universities that are jumping in the wagon. Harvard, Yale, and Brown endowment funds, for example, have been slowly accruing assets via Coinbase.
Many universities have an endowment fund. It is a collection of assets accrued by the university to help teach and research activities. Normally, it is in the form of money and other assets that the university gets in donations.
The three universities are not the only ones into crypto. The University of Michigan is also part of it as it has quite an investment in the form of cryptocurrencies. Several other Ivy League universities are also part of the band through blockchain technology ventures.
According to CoinDesk, there are no details of the university investments as they asked to remain anonymous. It is only at the Coinbase annual report 2020 that mentioned the university endowments without any further detail.
Some endowment funds have an account with Coinbase for more than a year. Even though some joined in 2019, 2020 has been the tip of the iceberg with many joining it. It is the same case with other investors that took advantage of the pandemic to invest in crypto. The returns say it all, especially with the recent BTC rally.
Among the university endowments, Harvard has the largest share with over $40 billion in assets. Yale has over $30 billion, Michigan about $12.5 billion, and Brown $4.7 billion. It is, however, not clear the individual investments on crypto assets.
Yale has been in the light from 2018 when its chief investment officer was in the news for supporting two crypto-based venture funds.
Several Ivy League schools followed Yale in backing crypto VCs such as Harvard, Stanford, MIT, and other schools such as Dartmouth College, University of North Carolina, and Michigan. Most of these, also directly invest in cryptos through exchanges.
From a Global Custodian and Trade Crypto survey, 94% of 150 endowments participated in crypto-related initiatives in 2018, and only 7% plan to decrease their allocation in 2019. 54% of the endowment investments were direct, while 46% of the investment were through a fund. Of the 150 endowments, 89% were from the US, and 11% were from the UK and Canada.
Those who invested through a fund did that as they felt funds are more stable, reliable, trustworthy, and secure. It sounds like they are going for familiarity with traditional funds other than return on investment.
The rush for the best
The handsome profits in the sector have attracted institutional investors. This has caused the price of BTC (Bitcoin) to increase by the day. An increasing number of institutions are getting comfortable with BTC (Bitcoin). This can further result in more adoption. According to BlockTower Capital’s co-founder, Ari Paul, more institutions are comfortable with BTC (Bitcoin). They have a better understanding and can directly deal with regulated bodies such as Coinbase and Fidelity.
With the current changes in the crypto phase, there is a high possibility that institutional investors will be on the rise.
Many are investing in blockchain projects driven by crypto coins, making the crypto adoption surge upward.
As much as the crypto ecosystem has so much volatility, its returns are worth it.