Cryptocurrency adoption will be greatly strengthened when large funds such as pensions and endowments start investing. Notable among these are university endowments, which manage significant assets for each institution.
The University of Michigan is actively involved in cryptocurrency investment through CNK Fund I, LP, managed by Andreessen Horowitz. The fund targets “cryptocurrency network technology companies across various stages from seed to growth.” In June 2018, the University of Michigan Endowment made an initial investment of $3 million in the fund. As of June 2023, the total endowment is $17.9 billion.
Recent communications with the University Regents indicate additional investments in the fund, although the exact amount has not yet been disclosed, but is believed to be in the millions of dollars.
The University’s rationale for this investment is based on the belief that “cryptocurrencies have become an important area of innovation and entrepreneurship warranting focused attention,” and that as opportunities related to cryptonetworks become more defined, a separate thematic section will be launched. The need for funds may be reduced.
The University of Michigan isn’t the only one getting in on the action. Yale University, which has an endowment worth $40.7 billion as of June 2023, contributed $400 million in capital raising for cryptocurrency funds from Coinbase (NASDAQ:COIN) and Pantera Capital in 2018.
Likewise, Harvard’s endowment, the largest with over $50.7 billion as of June 2023, has also invested in cryptocurrency funds. As early as 2018, Harvard disclosed its investment in “at least one cryptocurrency fund.”
Other prominent universities, including Stanford University, Massachusetts Institute of Technology, Dartmouth College, and the University of North Carolina, have also allocated funds to cryptocurrency or cryptocurrency-related investments.
Despite the initial wave of investment in 2018, follow-up investments and additional commitments were made in subsequent years. As the cryptocurrency market develops and becomes more accessible through vehicles such as spot ETFs, it is likely that endowments and large funds will continue to increase their cryptocurrency investments.
Featured image: Wikipedia
Please see disclaimer