Stanford University’s endowment fund, managed by an investment group called the Blyth Fund, has allocated up to 7% of its portfolio to Bitcoin investments. The decision was announced by Kole Lee, a computer science major and leader at the Stanford Blockchain Club. Lee had pitched the idea to the fund in February and successfully convinced them to invest in Bitcoin.
The Blyth Fund, which is run by students and was established in 1978, manages a significant portion of Stanford’s endowment by investing in various assets, including stocks and bonds. With the addition of Bitcoin, the fund aims to diversify its holdings and take advantage of the potential growth in the cryptocurrency market.
Lee’s pitch to the fund emphasized three key factors: the increasing inflows into Bitcoin exchange-traded funds (ETFs), the cyclical nature of the crypto market, and the potential for Bitcoin to serve as a hedge against economic instability and geopolitical conflicts.
According to Lee, once Bitcoin breaks its all-time high of $69,000, there will be a significant increase in excitement among investors, leading to a surge in its value. He believes that this move to the upside will result in the covering of billions of dollars in short positions and further fuel the volatility of Bitcoin.
In a separate development, asset manager BlackRock has filed an amendment with the Securities and Exchange Commission to include Bitcoin exposure in its Strategic Income Opportunities Fund. The fund, which currently manages $36.5 billion in assets, may purchase shares in funds that directly track the price of Bitcoin.
BlackRock’s recently launched Bitcoin ETF, called IBIT, has been performing well since its inception. It has already surpassed $11 billion in assets under management and received an inflow of $420 million on March 4.
Overall, these developments reflect the increasing acceptance and interest in Bitcoin among institutional investors. As more investment funds and asset managers allocate a portion of their portfolios to Bitcoin, the cryptocurrency is likely to continue its upward trajectory.