U.S. Endowments Embrace Bitcoin: A $97,900 Surge

U.S. endowments are increasingly turning to cryptocurrencies as a means of diversifying their investment portfolios, with Bitcoin leading the charge. The value of the world's most prominent cryptocurrency has surged to approximately $97,900 from around $7,000 in 2020, attracting the attention of institutional investors.

Emory University has revealed that it holds millions of dollars in Grayscale's Bitcoin ETF, while the University of Austin has announced plans to establish a $5 million Bitcoin fund to support its substantial endowment. The Rockefeller Foundation, which boasts a $4.8 billion endowment, is also considering increasing its crypto exposure after having invested in crypto venture funds in 2023.

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. This uptick in institutional interest reflects a broader acceptance of digital assets as a legitimate component of diversified investment portfolios.

The introduction of Bitcoin ETFs and the election of the crypto-friendly U.S. President Donald Trump have sparked institutional fear of missing out on potential gains. As the potential of cryptocurrencies becomes increasingly evident, investors are eager to capitalize on the growing market.