The cryptocurrency market is growing in leaps and bounds, despite the existent risks and downsides. Also, there is increased interest in the new asset class as investors look for more investment vehicles. Like any other asset, Crypto needs high-profile engagement to earn more attention from general public. Therefore, as Harvard Endowment Invests in crypto, more investors will want to look that direction.
According to a recent report in The Information, Harvard Endowment is among several Ivy League endowments with crypto interest. As per the report, most of the endowments have put money in at least one cryptocurrency fund.
Harvard endowment invests in crypto to join a growing list of enthusiasts
For much of this year, cryptocurrency performed so poorly. As a result, a lot of negative sentiment exists about the feasibility of the crypto project. However, entry of such reputable institutions in the cryptosphere is the biggest indictment of cryptocurrency.
Interestingly, news of academic institutions investing in cryptocurrencies began as mere rumours. In June, Business Insider carried an exclusive report which hinted at Yale University making an entrance into the crypto market.
The report cited John Lore, the founder of Capital Fund Law Group who said: “We’re seeing some academic institutions getting involved on a limited basis for strategic reasons.”
However, the lawyer could not mention the names of the universities because of attorney-client confidentiality.
Lack of technical knowledge
Further in October, CNBC broke the story that Yale was officially investing in crypto-related businesses. Citing sources, CNBC said that the University invested, in the month of June, in Andreessen Horowitz’s inaugural fund, a16z crypto.
Interestingly, Yale’s endowment fund added another round of investment in Paradigm. The fund has associations with Fred Ehrsam, Coinbase Inc co-founder and a few other crypto personalities.
Therefore, as Harvard endowment invests in crypto, it adds to the credibility of cryptocurrency as an investment vehicle. However, the report in The Information observes that the universities are not investing in the market directly. Per the publication, this is due “lack of technical knowledge and uncertainty about how to store the assets securely.”
Experts assure that as more information about the risk factors and potential of crypto comes up, more people will join.
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