Harvard University’s endowment fund has invested in cryptocurrency company Blockstack Inc continuing the trend of educational establishments’ interest in the burgeoning digital payment industry.
Harvard joins a small group of institutional investors that have jumped into crypto assets. Two pension plans in Virginia invested in a venture-capital fund for the blockchain and digital-assets Along with Harvard, the Massachusetts Institute of Technology (MIT), Stanford University, Dartmouth College, and the University of North Carolina (UNC), have all made investments from their endowments into at least one crypto fund in 2018.
Harvard Management currently manages the prestigious university’s USD 39 billion endowments. Blockstack’s USD 50 million digital token offering has been boosted by the endowment fund’s investment of about USD 11.5 million, with Havard Management purchasing 95.8 million company tokens to date.
The trend of university investment in cryptocurrency was commented on last year by Henrik Andersson, chief investment officer of Apollo Capital Fund, when he predicted, “During the coming year we will see a gradual adoption from institutions… We have the first US university endowments investing in funds.” Crypto entrepreneur Mike Novogratz expressed similar views on the impact of institutional investment in Bitcoin at the time:
“THE FACT THAT DAVID SWENSEN [YALE’S CHIEF INVESTMENT OFFICER] PUT AN INVESTMENT INTO BITCOIN — WITH HIS REPUTATION ON THE LINE, HIS ENDOWMENT ON THE LINE — TELLS YOU SOMETHING… SOME OF THE SMARTEST PEOPLE IN THE INVESTING WORLD THINK IT’S A STORE OF VALUE.”
Keeping the uni connection alive, a network designed by computer scientists at Princeton University will become the backbone of Blockstack’s digital assets called Stacks tokens, which will become a method of tracking stakeholders details on the network itself.