Universities like Harvard University, Brown University, Yale University, and the University of Michigan are the schools that are coming up with multi-billion-dollar endowments. It started with the beginning of the buying of cryptocurrency directly on the exchange, as the report says.
Numerous large US universities endowments are focusing on buying cryptocurrency on the exchanges. Coindesk came up with a report, citing two people who have encountered a similar situation. There are a lot of endowments that are allocating a minute portion with crypto. Coindesk also cited people talking about it.
Coinbase, which is the largest cryptocurrency exchange in the US, is mentioning the endowments among the clients who are investing in crypto. The endowment is also being bought on other exchanges.
It is a rising institutional adoption, along with one of the biggest crypto stories from the past year. The bitcoin rose up to fourfold in 2020 and is gaining more since the starting of this year. Though it was trading near $32000 on Tuesday, it is going near $42000 from this month’s beginning.
Investors like the Guggenheim Partners LLC and Paul Tudor Jones are touting it. It is helping to raise the interest while setting a precedent. While increasing, it is mentioned as a diversifier in the allocation of assets, along with this digital gold.
“While 2020’s unusual macroeconomic environment has accelerated crypto adoption, importantly, many clients who allocated this year — particularly endowments, corporates, and other long-term investors — do not believe the present market dynamics are required for Bitcoin’s success,” Coinbase said in its report. “They intend to hold Bitcoin as part of their core portfolio over the long term, throughout varying market conditions.”