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Paradigm: Yale University’s David Swensen Invests in Cryptocurrency Fund

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Yale University cryptocurrency investment

Cryptocurrency is going mainstream.

In fact, one of the world’s largest endowment funds just invested in two cryptocurrency funds, including one created by a Coinbase founder.

Yale University Endowment Makes a Play on Cryptocurrency

CIO of Yale’s nearly $30 billion endowment, David Swensen just invested in two venture funds that focus on cryptocurrency.

Such an endorsement of assets is significant.  Remember, Swensen is one of the top money manager pioneers, having managed one of the best-performing college endowments.  No wonder other endowments have tried to replicate his investment model.

An investment in cryptocurrency may have just opened the floodgates

The endowment already invested in Andreessen Horowitz’s $300 million crypto fund, for example.

Yale also invested in Paradigm, a cryptocurrency fund founded by Coinbase co-founder, Fred Ehrsam. Sequoia Capital partner Matt Huang and Pantera Capital’s Charles Noyes are also investors on the project.

Paradigm has plans to invest in early-stage projects that are focused on crypto, blockchain technology, and exchanges.

Granted, Yale hasn’t reported on the dollar-figure investment.  But that may not matter.

The Cryptocurrency Investment could Open the Floodgates

The fact that an endowment is jumping on cryptocurrencies is significant.

It’s adding another vote of confidence for an asset class that’s been severely beaten up.

As Ari Paul, CIO of BlockTower Capital told CNBC, he had spoken to multiple endowments that were sitting on the fence at one point. Many weren’t getting into the space because they were not entirely comfortable with it, he said.

“I do think it’s inevitable from a few angles,” said Paul, as quoted by CNBC. “Even if they never believe in it as an asset class, they’re smart enough to recognize the alpha opportunity.”

Now that we’re seeing a push into the space by the Yale Endowment, for example, it could help usher in greater instructional interest and confidence.

Coinbase CEO Brian Armstrong Believes in its Broad Adoption

Armstrong is an optimist even in a time when the cryptocurrency markets are going through a significant crash.  That’s because he believes that up to a billion people will use cryptocurrency in the next five years.

We have to remember that money is being revolutionized in front of our eyes.

It’s setting up frameworks for alternative payment systems, and banking with no middlemen.  There’s really no doubt that we’ll see higher adoption, and creation of more.  The best part – cryptocurrency has become far more fluid as it tears down borders and makes its way into mainstream finance.

Apparently, endowments like Yale strongly believe that, too.




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