Mike Novogratz, who leads Galaxy Digital, a prominent blockchain enterprise, indicated that institutions are hesitant to enter the crypto sphere. Yet, that seems not entirely accurate. Based on an exclusive report as mentioned by Bloomberg, University of Michigan’s massive $12 billion endowment is planning to channel more resources into crypto-focused investments soon, despite the crypto market facing volatility. the Bitcoin price .
University Endowment of $12 Billion Plans to Increase Commitment to Blockchain.
Referencing the agenda for a meeting set on February 21st by the Board of Regents concerning the endowment, Bloomberg stated the university is interested in a 'cryptonetwork technology' fund—otherwise known as blockchain—managed by the famed enterprise, Andreessen Horowitz. More precisely, the vehicle called 'CNK Fund I' is currently catching the attention of the University of Michigan.
Kevin Hegarty, serving as the chief financial officer at this state-supported university, explained that CNK directs its investments into 'cryptonetwork technology companies' spanning initial funding stages, venture growth, and further along. It remains uncertain if CNK involves direct investments into tangible digital assets like Bitcoin. Ethereum , or not.
Having previously invested $3 million into CNK during an early round last June, the endowment plans to allocate more flexible resources to this investment vehicle. Interestingly, there's no specific deposition amount declared for their anticipated venture with Andreessen Horowitz, suggesting the upcoming meeting may cover these investment specifics in detail.
Which other university endowments are branching into the world of cryptocurrency?
While this development stands out on its own, it's merely a glimpse of the increasing involvement between university endowments, pension funds, and crypto/blockchain assets.
Back in October 2018, the Bitcoin ecosystem was taken by surprise with news that David Swensen, a legendary investor, directed Yale University's $29.4 billion endowment to invest in crypto-focused venture funds. Aligning with Michigan's recent steps, Yale's internal investment team placed bets on funds with the support of Andreessen Horowitz. Additionally, the Swensen-led group allocated a part of their fund to Paradigm, a novel venture started by Fred Ehrsam, a co-founder of Coinbase, alongside a seasoned venture capital veteran.
Shortly after, unexpected reports by The Information detailed that endowments at Harvard, Stanford, and MIT, as well as other prestigious American institutions, are also turning towards cryptocurrency-focused funding endeavors. divulged This news emerges following a Boston finance consultant's advocacy for institutions, majors like pensions and endowments, to embrace the crypto journey wholeheartedly. According to a
An institutional expert urges pension funds and endowments to consider exploring the crypto frontier.
by Blockonomi, Cambridge Associates—an advisory firm closely connected with over $300 billion in collective funds, including pensions and endowments—recommended its clientele consider long-term investments in blockchain tech and cryptocurrency. Despite acknowledging the considerable risks involved, they stressed the revolutionary potential of these technologies, which could drastically transform the digital universe. previous reports Analysts further advised spending significant time delving into the intricacies of this domain, from understanding distinct investment avenues to comprehending the technological shifts it promises.
Wrapping up their notes, they sought to appease apprehensive investors deterred by the 2018 downturn with a note of encouragement:
“While the crypto sector experienced a sharp decline, leading to questions about its future viability, we foresee a budding industry rather than a stagnating one.”
Following the crypto arena since 2013, I have steadily written about the industry's developments, contributing to recognized platforms such as LongHash, NewsBTC, and Decrypt. Apart from writing, I engage with the EXODUS team at HTC, a Taiwan-based electronics giant, and possess a modest stash of Bitcoin. Reach out at [email protected].
