Large US University Endowments Are Buying Crypto; More Companies Adding BTC to Balance Sheets

According to a report, several large US university endowments like Harvard University, Yale University, Brown University, and the University of Michigan are buying cryptocurrencies directly through exchanges.

Many endowments are allocating a portion to crypto, and most of them have been in for at least a year, reported CoinDesk, citing two people familiar with the situation.

“When you start talking about pensions and endowments and hedge funds – that community has really taken quite candidly to the digital currency space and really wanting to ensure that they're able to deploy capital in a compliant and effective way,” commented Michael Sonnenshein, CEO of Grayscale.

The biggest US exchange Coinbase and other platforms have been used to buy the crypto assets.

Coinbase that revealed in its recent report that it has over 43 million users, with growth accelerating in late 2020, also stated,

“While 2020’s unusual macroeconomic environment has accelerated crypto adoption, importantly, many clients who allocated this year — particularly endowments, corporates, and other long-term investors — do not believe the present market dynamics are required for Bitcoin’s success. They intend to hold Bitcoin as part of their core portfolio over the long term, throughout varying market conditions.”

In 2021, the family offices and endowments are expected to increasingly get into cryptos along with increased interest in putting Bitcoin in Treasury reserves.

“I think we're going to hear about more companies putting this hedge on their balance sheet as well, particularly tech companies who understand the technology and are comfortable with it,” said ARK Investment Management's CEO, Cathie Wood, who shared in an interview with Yahoo Finance, that there are big companies asking her if they should follow in the footsteps of Square.

After getting more than doubled in less than a month to hit the $42k peak, Bitcoin is now keeping around $30k.

According to Wood, Bitcoin’s moves are propelled by “bond yield pushing, doing what many people did not expect it to do” and “there is no better hedge against inflation than Bitcoin.”

Wood, who has been in the business for over 40 years and is a strong Bitcoin proponent, further advised people to take profits and keep some powder dry for “'psychological wherewithal' when the world seems to be falling apart to pick up on bargain-basement prices.”

Because while she may not know the when and why of it, “we will have to go through ups and downs — I'm sure we're going to go through a doozy of a correction this year.”

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