Institutional Money in Crypto?
First here is the news story that is grabbing Crypto/Blockchain markets.
Citing an anonymous source familiar with the matter, Bloomberg reports that Yale University, the Ivy League school whose endowment is the second-largest in higher education, has invested in Paradigm, a cryptocurrency fund founded by Coinbase co-founder Fred Ehrsam, former Sequoia Capital partner Matt Huang, and Pantera Capital veteran Charles Noyes.
Including Yale’s investment, Paradigm has raised $400 million to invest in the cryptocurrency space, making it one of the largest such investment funds alongside Pantera, Polychain Capital, and Andreessen Horowitz (a16z).
Concurrently, CNBC reports that David Swenson — Yale’s “Warren Buffet” — invested university money in Andreessen Horowitz’s $300 million cryptocurrency fund, which the firm announced in June. Notably, a16z said at the time that it does not intend to be a fair-weather investor.
“We have an ‘all weather’ fund. We plan to invest consistently over time, regardless of market conditions. If there is another ‘crypto winter,’ we’ll keep investing aggressively,” the firm said at the time.
Yale’s endowment currently stands at $29.4 billion, a record high, following a return of 12.3 percent during the fiscal year that ended on June 30. A majority of those assets, 60 percent, are directed at alternative investments. Over the past decade, the university has returned an average of 7.4 percent, beating the 5.5 percent average university endowment return by a sizable margin, according to the Yale Daily News.
Second here is the short analysis - 1) If the crypto world really believe that $400mn of fund investment is the start of institutional money - then why has the market not shot higher? 2) Investing in funds that place money in blockchain, exchanges and other digital assets isn't the same as buying Bitcoin. 3) The techincal pressure on BTC holds until we break $7000 and stay over that.