Following Yale’s bold move to take the first step in investing in cryptocurrency fund, more universities are now caught up in the flurry with more than five universities in the United States already investing their endowment funds in cryptocurrencies.
The most prominent institutions in America seem very eager to set the pace as they become the first herd of educational institutions ready to place their bets on an industry with evolving potential. With the likes of Harvard University, Massachusetts Institute of Technology and Stanford University—all major Ivy league figures– saying yes to the crypto space, it would be no surprise if more universities join in soon in numbers.
As of press time, The Information reports instances of other universities with a portion of endowments already invested in cryptocurrencies, apart from big guns Yale, MIT, Harvard, and Stanford. The two other confirmed universities as of the moment are University of Carolina and Dartmouth College: all six with investments in at least one digital currency. According to the publication mentioned above, it is understood that each of the universities has its investments in tens of millions of dollars, with investments not only targeted at cryptocurrencies but at equity in respective cryptocurrency companies as well.
The recent crop of investments from academic institutions holds a special significance and does make a statement on the gradual adoption of cryptocurrencies and its potential in the real world. It does not change the fact, however, that these institutions still in some way have little or no exposure to the cryptocurrency industry. However, that is bound to change with time.
Information journalist Jon Victor explained the impact the new development would have on the industry, with renowned academic institutions implying credibility and validation of the industry with their investments. He wrote:
“A move by endowments into funds that will directly bet on cryptocurrencies signals a major shift in investor sentiment toward 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.”
While it might be a surprising flurry of frantic realizations to many observers, few analysts and key investors had predicted the possibility for a long while now. One of them is influential analyst and investor, Mike Novogratz, who predicted “herd” of institutional investors would power the next bitcoin bull market. The crypto market is still ‘sleeping’ for the moment, it would be interesting to see what ensues in days to come.