Yale University Jumps Headfirst into the Crypto Market

The Yale university figure, David Swensen, is the latest finance wizard getting into the market for cryptocurrencies. Yale, whose 30 billion dollar investments are handled by David Swensen, is among the institutions to invest in the cryptocurrency market, which has experienced a slight drop this year after a stunning rally back in 2017. However, Yale getting into the market highlights high-hopes for the currently stumbling crypto market and represents the much-needed confidence for an asset class that’s been hammered.

According to a CNBC source, Swensen’s team invested in Horowitz Andreesen’s inaugural $300 million crypto fund and also in Paradigm, a new blockchain and cryptocurrency company started by Coinbase co-founder Fred Ehrsam and former Sequoia Capital Partner Matt Huang, the source said. Though, representatives of Paradigm, Horowitz, and the Yale Investment Office refused to comment.

Statistical data from CoinMarketCap.com had shown that Bitcoin experienced growth by 50 percent this year, while the total capital market for all cryptocurrencies descended rapidly to 63 percent due to rumors of hacks, regulatory uncertainty, and failed projects.

Financial gurus have voiced out their doubts. Citadel’s billionaire hedge fund manager Ken Griffin said, “this can be compared with the Tulip Mania of the 17th century”; and J.P. Morgan’s Jamie Dimon called it a “fraud likened to rat poison.”

While the crypto market has been deterred by market malpractices and a lack of regulation, 96 percent of foundations and investments responding to a Q&A survey by NEPC in February said they wouldn’t invest in digital currencies.

Bill Barhydt, the CEO of Abra cryptocurrency exchange – which recently launched a new crypto index – said, “people are happy about the development but are afraid of investing or having to explain themselves. that’s the greed of institutional investing against the fear. A herd mentality exists as much as there is in retail investing.”

Elsewhere, companies such as Horowitz Andreessen are seriously focused on long-term projects.

Chris Dixon and Katie Haun, the co-managers at Horowitz Andreessen crypto investments, on an interview with CNBC said that these are “all-weather” betting that they’ll make over time irrespective of the market conditions. Katie Haun Added that Horowitz will invest in everything from early-stage tokens and coins to later-stage networks such as Bitcoin or Ethereum and will hold those endowments for up to 10 years.

Swensen sees Paradigm as a new firm yet to announce its existence as a great opportunity too real to miss, and the current crypto market as a sensible entry point.

Investment Model

Swensen’s endorsement of crypto resources is critical because he’s thought to be a great pioneer, engineering an institutional investments and having overseen a standout amongst the most-watched and best-performing college investments for three decades. Numerous different firms have looked to duplicate his venture, which supports a more time skyline and committing money to more liquid resources, including private equity.

Yale has reportedly witnessed a sharp growth in capital investment under Swensen’s leadership and has stated that its assets in fiscal 2019 will be directed towards venture capital, hedge funds, and leveraged buyouts.

If David Swensen’s crypto strategies succeed then a good number of other capital institutions and foundations are expected to follow.