The Financial Times reported a significant increase in cryptocurrency investments by U.S. endowment funds as the value of digital assets like Bitcoin reaches new heights. Emory University revealed in October that it holds millions of dollars in Grayscale's Bitcoin ETF, while the University of Austin announced in May its plans to establish a $5 million Bitcoin fund to support its substantial endowment, News.Az reports citing Investing.
Franklin Bi, a general partner at Pantera Capital, highlighted a "huge shift" in the interest in digital assets among endowments and foundations, which contrasts sharply with their minimal participation in the cryptocurrency sphere five years ago.
Bi's comments come at a time when Bitcoin, the most prominent cryptocurrency, has seen its value skyrocket to approximately $97,900 from around $7,000 in 2020. This surge has been partly attributed to the introduction of Bitcoin ETFs and the election of the crypto-friendly U.S. President Donald Trump, sparking institutional fear of missing out on potential gains.
In addition to Emory University's investment, the University of Austin is actively raising funds to enhance its $200 million endowment with Bitcoin. Moreover, the Rockefeller Foundation, which boasts a $4.8 billion endowment, is considering increasing its crypto exposure after having invested in crypto venture funds in 2023.
Chun Lai, the foundation's chief investment officer, expressed the importance of not falling behind as the potential of cryptocurrencies becomes increasingly evident.
Both Pantera Capital and the Rockefeller Foundation did not respond to requests for comment regarding their involvement and views on the growing trend of endowments investing in cryptocurrencies. This uptick in institutional interest reflects a broader acceptance of digital assets as a legitimate component of diversified investment portfolios.
