U.S. Endowment Funds Increasingly Embrace Cryptocurrency
As the cryptocurrency market reaches unprecedented heights, U.S. endowment funds are significantly ramping up their investments in digital assets. A recent report by The Financial Times highlights this growing trend, indicating a notable shift in the attitudes of institutions toward cryptocurrencies.
Franklin Bi, a general partner at Pantera Capital, remarked on the “huge shift” in interest from endowments and foundations, which, just five years ago, reported only “minimal participation” in the crypto space. This shift seems to be driven by the phenomenal rise in Bitcoin’s value, which has surged to approximately $97,900 from around $7,000 in 2020. The introduction of Bitcoin exchange-traded funds (ETFs) and the election of crypto-friendly U.S. President Donald Trump have contributed to this dramatic increase, prompting institutions to act lest they miss out on potential gains.
Prominent institutions are taking notice. Emory University in Georgia revealed in October that it has invested millions in Grayscale’s Bitcoin ETF. Meanwhile, the University of Austin announced in May its initiative to raise a $5 million Bitcoin fund, which is intended to bolster its existing $200 million endowment. Furthermore, the $4.8 billion Rockefeller Foundation is contemplating an increase in its cryptocurrency investments after having participated in crypto venture funds earlier in 2023.
Chun Lai, the foundation’s chief investment officer, expressed the urgency of this movement, stating, “We don’t want to be left behind when their potential materializes dramatically.” However, despite the growing interest, the Rockefeller Foundation has yet to respond to inquiries from CoinDesk regarding additional details.
