Some of the largest university charitable foundations in the United States have been quietly buying cryptocurrency through accounts at Coinbase and other cryptocurrency exchanges over the past year, as the journalists have found out.
According to two anonymous sources, we are talking about Harvard, Yale, Brown and the University of Michigan. That being said, several Ivy League funds have shown interest in blockchain technology through cryptocurrency-focused venture funds back in 2018.
To begin with, we note that the connection of large educational institutions with cryptocurrencies and the blockchain asset industry in general has been noticeable for a long time. In particular, in May 2020, representatives of the University of Cambridge created the so-called Bitcoin miners card. On it, they displayed changes in the concentration of special devices for mining BTC around the world.
Predictably, the leader here is China, which has low electricity costs in certain areas. In addition, the production of ASIC miners is concentrated in the country, which, among other things, allows manufacturers to “test” them before sending them to customers.
However, there are also less pleasant cases. For example, in the second half of January, a professor at Harvard University announced that Bitcoin had no prospects. According to him, the regulatory authorities will definitely take a tight grip on the cryptocurrency, which supposedly will force users to turn away from it. Well, this should be followed by a collapse in the value of the asset.
It is important to note that the professor put forward similar statements back in 2018. That is, during this time, he did not have time to realize the advantages of cryptocurrency and decentralization.
However, as it turned out now, the Harvard leadership could have invested in the first cryptocurrency for a long time. And the criticism of their professor here clearly did not interfere.
Who buys bitcoins
Representatives for Yale and Brown did not respond to requests for comment by the time the article was published. The Harvard and the University of Michigan foundations also declined to speak with reporters. Cryptocurrency exchanges are likewise silent – it seems that the Ivy League is not particularly eager to talk about experiments with digital assets.
According to an anonymous source, some of the aforementioned university funds may have had accounts with Coinbase, and they were listed on exchanges as long as 18 months ago. Here is a line with details of what is happening. She is quoted by Coindesk.
This has most likely been happening since mid-2019. Most of them have been involved in the cryptocurrency industry for at least one year. I think they will probably discuss this information publicly at some point this year. The funds have already received enough assets to make good returns for the foreseeable future.
Recall that university charitable foundations are pools of capital accumulated by academic institutions, often in the form of charitable donations. These funds, which support training and research, can be allocated to various assets for investment purposes. And in this case, cryptocurrencies became the object of investment.
Harvard has the largest such fund at its disposal with more than $ 40 billion in assets. Yale University has over $ 30 billion, Michigan has about $ 12.5 billion, and Brown has $ 4.7 billion. It is not known how much of each of these funds was invested in cryptocurrency, but most likely it is unlikely to be large, since crypto is still considered and is a high-risk asset.
Another funny moment can be remembered here. In 2018, Yale University Chief Investment Officer David Swensen made it onto the mainstream of cryptocurrency news by supporting two venture capital funds focused on digital assets. One is owned by Andreessen Horowitz, and the other is created by Coinbase co-founder Fred Ersam and former Sequoia Capital partner Matt Huang. Several other universities have followed Yale in support of venture capitalists, including Harvard, Stanford, Dartmouth College, Massachusetts Institute of Technology, University of North Carolina, and Michigan. That is, the connection of large educational institutions with the blockchain world has been noticeable for a long time.
We believe that the importance of this data breach cannot be overemphasized. Still, the funds of the largest universities have huge funds at their disposal, that is, they can afford to invest them in almost any direction of human activity. Despite this, many of them chose the cryptocurrency, which critics still accuse of being insecure and unreliable.
Hence, we can conclude that the top analysts of the mentioned funds see a huge potential in cryptocurrencies, which has yet to be fully revealed. And this adds confidence in the future of the industry.