Among many other popular trends, investing in crypto-focused funds has become a new fashion in the crypto ecosystem. The Ivy Leauge University Yale has reportedly invested in crypto related funds.
As per anonymous sources cited on Bloomberg, the university along with other investors have participated in the funding process for new digital asset known as Paradigm. This initiative was founded Coinbase Inc. co-founder Fred Ehrsam, former Sequoia Capital partner Matt Huang, and Charles Noyes, an ex-employee of crypto fund Pantera Capital.
Perhaps this endowment is known to be the second largest in the higher education sector behind Harvard and given the background of all three founders coming from virtual currency area has helped to raise $400 million through these funds.
Interestingly, reports from CNBC indicates that apart from Paradigm, Yale has also invested in the premier Andreessen Horowitz $300 million ‘a16z’ cryptocurrency fund. Also, the current endowment rate of university stands at $29.4 billion, a record high, following a return of 12.3 percent during the fiscal year which closed in June 2018.
However, there doesn’t seem to be an official announcement from University end as to investment in both these funds is all true. In fact, this might turn to be a positive news for Yale as far as digital currency investment is concerned.
With the current volatility of the cryptocurrency market, it’s clear that institutional investments might help in improving cryptocurrency legitimacy. For pension and endowment funds, one major hurdle is the lack of custodial tools. The introduction of robust custody tools might boost the big-money players to invest directly in the cryptocurrency market itself.
What do you think of Yale University investment? Let us know your thoughts in the comment section below
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