U.S. Endowments Bet Big on Bitcoin

The U.S. Foundation and University Endowment Fund Join Cryptocurrency Craze, Seeking to Build Bitcoin Portfolio

In a significant shift in investment strategies, U.S. foundations and university endowments are increasingly turning to cryptocurrency, joining the digital asset trend. Austin University, a one-year-old institution, is spearheading this movement by raising a $5 million Bitcoin fund as part of its $200 million endowment fund, marking the first such initiative among endowments and foundations in the country.

Emory University in Georgia made headlines last October when it became the first university endowment fund to disclose a Bitcoin ETF holding. The $48 billion Rockefeller Foundation is also considering expanding its cryptocurrency investments, provided its user base becomes more diversified. This trend is not isolated; a report on cryptocurrency risk funds indicates that endowments and foundations, once cautious, are now pouring significant funds into the sector.

Pantera Capital, a leading cryptocurrency investment firm, has seen an eight-fold increase in its endowment and foundation client base since 2018. Yale University's endowment fund invested in two cryptocurrency risk funds in 2018 when Bitcoin's price was less than a tenth of its current value. Britt Harris, the former CIO of the $78 billion University of Texas/Texas A&M Investment Management Company, revealed that under his leadership, the largest university endowment fund in the U.S. made "small experimental" investments in cryptocurrency risk funds in the early 2020s, viewing it as a "potentially attractive future strategy."

These developments suggest a growing acceptance and interest in cryptocurrency among U.S. foundations and university endowments. As the digital asset class continues to evolve and gain mainstream recognition, these institutions are increasingly recognizing the potential benefits of integrating cryptocurrency into their investment portfolios.