With the crypto sector gaining momentum, universities are now the newest fans of digital coins.
Cryptocurrencies have attracted many institutional investors like PayPal and MicroStrategy, and it’s not hard to understand why. During the last year, Bitcoin is up almost 280%. But right now it has come to light that universities like Harvard, Yale and Brown have been invested in BTC as well.
Some of the largest university endowment funds in the U.S. have been quietly buying cryptocurrency for the past year or so through accounts held at Coinbase and other exchanges, CoinDesk has learned.
According to two sources familiar with the situation, Harvard, Yale, Brown and the University of Michigan as well as several other colleges have been buying crypto directly on exchanges. Some of the university endowment funds in question may have held accounts with Coinbase for as long as 18 months, according to one source.
“It could be since mid-2019,” the source said. “Most have been in at least a year. I would think they will probably discuss it publicly at some point this year. I suspect they would be sitting on some pretty nice chunks of return.”
University endowment funds buying cryptocurrency through Coinbase and other exchanges might have a massive impact on the sector escalating the number of potential researchers in the subject.
To put simply, university endowments essentially are large amounts of capital amassed by academic establishments, most of which come in the form of charitable donations. These funds are spent to support further teaching and in-depth research.
Harvard’s endowment boasts of over $40bn in assets, while Yale over $30bn and Michigan holds circa $12.5bn. While the exact amount allocated to crypto is unknown, it’s likely that it might be a good percentage of their total assets.
In a previous interview, co-founder of BlockTower Capital and former investment manager for the University of Chicago admitted: “If I had heard that three years ago, I would have said it was wrong.
“But a lot of institutions are now comfortable with bitcoin. They understand it and can just buy it directly, as long as it’s from a regulated entity like Coinbase, Fidelity or Anchorage.”
Cryptocurrencies have slowed down a bit during the last several weeks, however analysts are still predicting great bullish runs during 2021, this might be good time to buy while Bitcoin and Ethereum are down from their all-time high prices.
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