Here is the rewritten content in well-organized HTML format with all tags properly closed:
U.S. Endowment Funds Increase Exposure to Crypto as Digital Assets Soar to New Highs
According to a recent report by The Financial Times, U.S. endowment funds are increasing their exposure to cryptocurrency as the digital assets continue to reach new highs. This shift in investment strategy is a significant departure from just five years ago, when endowments and foundations reported minimal participation in crypto.
Increased Interest in Digital Assets
Franklin Bi, a general partner at Pantera Capital, noted that there has been a “huge shift” in interest in digital assets from endowments and foundations. This increased interest has been driven by the rising value of cryptocurrencies, particularly Bitcoin, which has soared to around $97,900 from around $7,000 in 2020.
Institutional Investors Take Notice
As the price of Bitcoin has reached new heights, institutional investors are taking notice. Emory University, based in Georgia, recently disclosed that it had millions worth of Grayscale’s bitcoin ETF. The University of Austin announced in May that it is raising a $5 million bitcoin fund to contribute to its $200 million endowment. The $4.8 billion Rockefeller Foundation is also exploring whether to increase its exposure to crypto. The foundation invested in crypto venture funds in 2023.
Why the Shift to Crypto?
So, why are endowment funds suddenly showing an interest in crypto? According to Chun Lai, the chief investment officer of the Rockefeller Foundation, “We don’t want to be left behind when their potential materialises dramatically.” This sentiment is echoed by other institutional investors, who are looking to capitalize on the growing trend of cryptocurrencies.
Conclusion
The shift towards crypto by endowment funds is a significant development in the world of finance. As the price of cryptocurrencies continues to rise, we can expect to see even more institutional investors joining the fray. With their deep pockets and extensive resources, these investors have the potential to drive even more growth in the crypto market.
FAQs
- What is the current price of Bitcoin? The current price of Bitcoin is around $97,900.
- What is the reason behind the shift towards crypto by endowment funds? The shift is driven by the rising value of cryptocurrencies, particularly Bitcoin, and the potential for significant returns.
- Which institutions are investing in crypto? Emory University, the University of Austin, and the Rockefeller Foundation are just a few examples of institutions that are investing in crypto.
- What is the potential impact of institutional investors on the crypto market? With their deep pockets and extensive resources, institutional investors have the potential to drive even more growth in the crypto market.
