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Coinpaprika 2025-02-10 08:26:44

University of Austin Invests in Bitcoin as Endowments Turn to Crypto

The University of Austin is taking a bold step into Bitcoin investment, planning to allocate $5 million from its $200 million endowment fund to the digital asset. This marks a significant shift as more universities begin integrating Bitcoin into their portfolios. This move is part of a growing trend among U.S. institutions embracing cryptocurrency as a legitimate investment. Reports indicate that the University of Austin, established just a year ago, is the first in the country to launch a dedicated Bitcoin endowment fund. Chad Thevenot, the university’s senior vice president for advancement, stated that Bitcoin holdings will remain untouched for at least five years. He compared Bitcoin’s long-term value to traditional assets like real estate and stocks. “We believe in its long-term potential, just as we do with equities and real estate,” he explained. Austin is not alone in this shift. Last year, Emory University invested over $15 million in Bitcoin through Grayscale’s spot Bitcoin ETF, making it the first university endowment to gain direct exposure to the cryptocurrency. Historically, endowment funds have been cautious about digital assets, but changing regulations and increasing acceptance are encouraging them to explore crypto investments. A key reason for this shift is the U.S. government's evolving stance on digital finance. A recent executive order aims to strengthen leadership in the sector, paving the way for wider blockchain adoption. The President’s Working Group on Digital Asset Markets, led by crypto and AI expert David Sacks , is shaping policies on stablecoins and a potential national digital asset reserve. This supportive environment has led endowment funds to reconsider their strategies. The Rockefeller Foundation , which manages $4.8 billion in assets, has hinted at increasing its exposure to cryptocurrency. While the foundation has previously invested in crypto-focused venture funds, it is now looking at deeper involvement as the market matures. Chun Lai, the foundation’s chief investment officer, acknowledged the uncertainty surrounding Bitcoin’s future but emphasized the risk of missing out. “We don’t know where crypto will be in ten years, but we don’t want to be left behind when its potential fully emerges,” Lai said. Market analysts believe Bitcoin’s increasing presence in institutional portfolios highlights its growing appeal as an alternative investment . As regulations become clearer, more institutional investors will likely see Bitcoin as a valuable part of their traditional portfolios, further securing its place in mainstream finance.

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