Endowment funds at U.S. universities and colleges are turning to cryptocurrencies to boost their investment returns.
The Financial Times newspaper is reporting that a growing number of school endowment funds are betting on Bitcoin (BTC) and other crypto as they look to capitalize on the popularity of digital assets.
The newspaper quotes Pantera Capital as saying that there has been a “huge shift” in interest among endowments that five years ago had minimal participation in crypto.
The price of Bitcoin, the largest cryptocurrency by market capitalization, has soared to nearly $100,000 U.S. from $7,000 U.S. in 2020.
The dramatic rise, coupled with the launch of spot Bitcoin exchange-traded funds (ETFs) that track the price movements of crypto, have led endowments to invest in cryptocurrencies.
Emory University based in Atlanta, Georgia has disclosed it holds millions worth of Grayscale's Bitcoin ETF.
The University of Austin in Texas has raised a $5 million U.S. Bitcoin fund to contribute to its $200 million U.S. endowment.
Other foundations are also looking to increase their exposure to crypto as the price increases.
The $4.8 billion U.S. Rockefeller Foundation is exploring whether to increase its crypto investments after initially taking a stake in crypto venture funds back in 2023.
Bitcoin is currently trading at $97,500 U.S., having gained 4% so far this year.
