Several top Universities are starting to invest in virtual currencies. Educational Institutions in the United States decided to place funds on digital assets such as Bitcoin. The Information reported on this phenomenon just a few days ago, showing that there is real interest in the space.
Universities Invest in Cryptos
During the last months, cryptocurrency enthusiasts have been waiting for institutions to enter the crypto market. And it seems that the first companies are recognized educational institutions in the US.
Among the most important institutions investing in the market, we find Dartmouth College, Stanford University, Harvard University, Massachusetts Institute of Technology, and the University of North Carolina. All of them have decided to place some funds in cryptocurrency funds.
According to unnamed sources familiar with the investments, these universities invested tens of millions of dollars in crypto funds through their endowments.
Back on October 8, UseTheBitcoin reported that Yale University decided to invest in two cryptocurrency funds, Paradigm, and a16z.
Although these universities entered the crypto market, their exposure to crypto assets is still low. However, this marks the beginning of a tendency that could be very important for cryptocurrencies.
The Information explained:
“A move by endowments into funds that will directly bet on cryptocurrencies signals a major shift in investor sentiment toward the asset class, in the same way that institutions over the past decade became more willing to invest in private tech companies. Backing from such closely watched institutions could help validate cryptocurrencies, which are still considered too risky by many institutional investors.”
Institutions have been reluctant to enter the crypto market. Indeed, there are no good crypto-services providers in the space. Nonetheless, in the last months, some companies such as Coinbase or the Intercontinental Exchange (ICE) have been focusing on different crypto-related products.
Traditional financial institutions are searching for companies that are able to provide institutional-grade services. Bakkt, the platform that the ICE is developing, promises to be game-changer.
If institutional investors start placing their funds in virtual currencies, we could experience a new bull run in the market. Retail investors triggered the last bull run experienced in December 2017.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.
