U.S. University Endowments Increase Cryptocurrency Investments

According to Odaily, U.S. foundations and university endowments are increasingly investing in cryptocurrencies, joining the digital asset trend. The University of Austin, established a year ago, is raising a $5 million Bitcoin fund for its $200 million endowment, marking the first such fund among the nation's endowments and foundations. Last October, Emory University in Georgia became the first university endowment to disclose Bitcoin ETF holdings. Its Chief Investment Officer noted that the $4.8 billion Rockefeller Foundation is considering increasing its cryptocurrency investments, following a more diverse user base after investing in crypto venture funds two years ago. "We cannot predict what cryptocurrencies will look like in 10 years," said the foundation's Chief Investment Officer, Chun Lai. "We don't want to fall behind when their potential becomes apparent." Crypto venture funds report a significant influx of capital from endowments and foundations that were previously hesitant. Pantera Capital, a leading venture fund focused on digital assets in California, has seen its endowment and foundation clients grow eightfold since 2018. Leading U.S. endowments and foundations were among the first institutional investors to embrace cryptocurrencies. Yale University's endowment invested in two crypto venture funds in 2018 when Bitcoin's price was less than a tenth of its current level. Britt Harris, former Chief Investment Officer of the $78 billion University of Texas/Texas A&M Investment Management Company, stated that under his leadership, the largest U.S. university endowment made "small experimental" investments in crypto venture funds in the early 2020s, viewing it as a "potentially attractive future strategy." Franklin Bi, a general partner at Pantera Capital, noted a "dramatic shift" in endowments and foundations' interest in digital assets, as five years ago, these institutions reported "minimal engagement" in the field. Despite significant challenges facing cryptocurrencies, such as lack of adoption and policy uncertainty, some endowments believe in the long-term value of digital assets. Chad Thevenot, Senior Vice President for Development at the University of Austin, stated that the endowment will hold its cryptocurrency portfolio, announced in May, for at least five years. Others remain cautious, like Brian Neale of the University of Nebraska Foundation, who has not engaged with cryptocurrencies and plans to wait until more peers join and regulatory frameworks become clearer.