It seems that institutions are starting to enter the cryptocurrency market. The recognized Yale University has reportedly invested in two important crypto funds. According to Bloomberg, the Ivy League school invested in Paradigm and in Andreessen Horowitz’s fund.
Yale University Invests in Cryptocurrencies
Bloomberg cites anonymous sources familiar with the matter explaining that the University has invested in crypto funds. Paradigm has been founded by Coinbase co-founder, Fred Ehrsam, Matt Huang from Sequoia Capital and Charles Noyes.
Paradigm has already raised $400 million dollars in order to invest in cryptocurrencies. In this way, the company is one of the largest investment funds in the industry alongside Pantera, Polychain Capital and a16z.
In addition to it, CNBC reported that the University has also invested in Andreessen Horowitz’s cryptocurrency fund.
The fund a16z said in June:
“We have an ‘all weather’ fund. We plan to invest consistently over time, regardless of market conditions. If there is another ‘crypto winter,’ we’ll keep investing aggressively.”
Yale has already invested $29.4 billion dollars. Most of the assets of the company have been allocated in alternative investments, obtaining good results in the last years.
According to the founder of Capital Fund Law Group, John Lore, academic institutions started to invest in virtual currencies. He says that these institutions are doing so very carefully and for strategic reasons.
At the moment of writing, there is no information about the total investment made by Yale on these funds.
Ari Paul, chief investment officer at the crypto hedge fund Block Tower Capital, commented:
“We’re in a bear market until new buyers are enticed. Even small dollar amount is legitimizing. If that happens, every family office says, ‘Oh, Yale’s in. That gives us the excuse.”
The market needs to create the proper infrastructure for these investments to flourish in the space. There are currently no institutional-grade crypto platforms available. However, in the near future, some companies will be launching platforms specifically designed for institutions. One of these examples is the Intercontinental Exchange (ICE) with its Bakkt platform.
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.