Target capital management funds of some universities in the United States have been buying cryptocurrency through accounts on Coinbase and other cryptocurrency exchanges over the past year.
According to two sources familiar with the situation, Harvard, Yale and Michigan Universities, Brown University, as well as several other higher educational institutions in the United States bought cryptocurrency through exchanges. Recall that in the fall of 2018, five major US universities invested in cryptocurrency funds.
“There are quite a few of them,” said the source, who asked to remain anonymous. “Many funds currently allocate a small amount to invest in cryptocurrency.”
Yale University and Brown University did not respond to requests for comment. The Harvard and University of Michigan Trust Funds declined to comment. Coinbase also declined to comment. In the exchange’s annual report for 2020, university trust funds were mentioned only once, but without disclosing their names.
According to another source, who also wished to remain anonymous, some of these university funds may have had accounts on Coinbase for at least 18 months:
“They could have started buying cryptocurrencies as early as mid-2019. Most of them have accounts for at least a year. I think the universities will make this information public this year.”
University endowment funds are pools of capital accumulated by educational organizations, often in the form of charitable donations. These funds, which support training and research, can be allocated to various assets for investment purposes.
Harvard and Yale have the largest funds with assets of more than $40 billion and $30 billion, respectively. The University of Michigan’s endowment is about $12.5 billion, and Brown University’s is $4.7 billion.
The interest of institutional investors in crypto assets continues to grow. At the beginning of the month, the CEO of Grayscale Investments said that the company expects increased interest in cryptocurrencies from pension funds, which will contribute to the growth of the market.