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Harvard Endowment invests in cryptocurrency

Maya Mandz | Apr. 15, 2019
Harvard Endowment invests in cryptocurrency

April 15, 2019, | AtoZ Markets - Harvard Endowment invests in cryptocurrency and steps into crypto space by signing an agreement with the blockchain startup Blockstack. The Harvard University made unprecedented investments in the blockchain startup, which allowed the company to raise $ 48 million in the form of selling its own tokens.

Harvard Endowment invests in Crypto: What is the deal?

According to a preliminary proposal which Blockstack LLC, a US-based blockchain software provider filed on the Securities and Exchange Commission (SEC) on April 11, the startup appointed a Harvard Management representative as a member of the token advisory board.

Two other representatives from Lux Capital and Foundation capital were also mentioned as the advisory board members. The aforementioned representatives are limited partners of QP, which acquired about 95.8 million tokens. The company is currently offering investment contracts, issuing 295 million securities at $ 0.3 per share. Blockstack has 21 employees and assets worth $ 32 million.

Harvard Endowment’s capital enables investments in crypto

One of the reasons why Harvard Endowment invests in cryptocurrency is that because it has enough funds to do so. Last year, the Harvard University Charitable Foundation amounted to $ 39.2 billion, making it the largest college support fund in the world.

According to the National Education Center data, at the end of the fiscal year 2015, the US higher education facilities’ endowment funds reached $ 547 billion, and the five largest university funds control $ 118 billion.

According to Anthony Pompiano, co-founder of the crypto-venture fund Morgan Creek Digital, the number of funds Harvard Endowment invests in cryptocurrency and token sale can reach between 5 and 10 million dollars.

Yale University is also known for its investment in cryptocurrency funds. However, it should be noted that, since these academic institutions are private, there is little detail about how and where they invest their funds.

Harvard among institutional investors in crypto

Now that it has been confirmed that reputable institutions in the crypto industry acquired enough funds to invest, this may push other investors who are still wondering whether to take a step towards digital assets.

A number of world-famous colleges have previously shown interest in the crypto industry. Some universities began offering the blockchain-specific courses, while others, such as Cambridge, funded in-depth research on crypto-financing. Some schools, such as Kings College in North Carolina, even accept bitcoin tuition fees.

Although there is evidence that academic institutions increase their cryptocurrency rates, the amount of investments from these institutions is still unclear. However, it may signal to other financial institutions that there are significant opportunities in the blockchain and cryptocurrency.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.