Stanford University’s Blyth Fund has committed 7% of its portfolio to Bitcoin (BTC). The endowment purchased BTC for $45,000 token.
Stanford’s Blyth Fund, under the leadership of Computer Science Major Kole Lee, has embraced Bitcoin as a pivotal element of its diversified investment portfolio. This comes alongside BlackRock’s SEC filing to incorporate Bitcoin exposure, signalling a paradigm shift in institutional attitudes toward cryptocurrencies.
Stanford’s decision reflects the broader trend of institutional interest in digital assets, as BlackRock moves to integrate Bitcoin into its $36.5 billion Strategic Income Opportunities Fund.
Kole Lee’s persuasive pitch highlighted Bitcoin ETF inflows, the cyclical nature of the crypto market, and Bitcoin’s role as a hedge against economic uncertainties. This move by Stanford’s fund underscores a calculated approach to crypto adoption.
Simultaneously, BlackRock’s filing for Bitcoin exposure amplifies the broader institutional embrace of digital assets. Grayscale’s Bitcoin ETF reevaluation further adds weight to this trend, hinting at a potential bullish period for crypto investors.
In 2021, reports indicated discreet cryptocurrency purchases by Ivy League institutions, including the University of Michigan, Brown, Yale, and Harvard endowments. The use of platforms like Coinbase signifies a growing trend among prestigious universities to discreetly invest in digital assets, showcasing a broader institutional recognition of crypto’s potential.
In September 2023, Stanford University revealed plans to return funds received from the crypto trading company FTX and related entities. The move aligns with a lawsuit alleging a transfer of around $5.5 million to Stanford’s accounts, reflecting the evolving dynamics between traditional institutions and the crypto sector.
Bitcoin’s (BTC) strong bullish momentum
Bitcoin’s recent surge, nearing its all-time high, is partly attributed to increased demand in spot Bitcoin ETFs. The SEC’s approval of spot Bitcoin ETFs in January paved the way for substantial institutional investments, with BlackRock and Fidelity leading the charge.
These ETFs offer investors a less risky way to engage with Bitcoin, attracting billions of dollars in deposits. Unlike futures-based ETFs, spot ETFs are backed by actual BTCs and this contributes to the cryptocurrency’s price rally.
Renowned author Robert Kiyosaki foresees a shake-up in the U.S. economy, predicting significant gains for Bitcoin and silver while anticipating a crash in gold below $1,200. His preference for tangible assets over traditional financial instruments aligns with the ongoing discourse about the role of cryptocurrencies in hedging against economic uncertainties.
Contrasting Kiyosaki’s optimism, Prominent economist and gold advocate Peter Schiff has sounded a stark warning for investors engaged in the Bitcoin frenzy, particularly those betting on the cryptocurrency’s exchange-traded funds (ETFs).
Schiff contends that the surge in Bitcoin’s price, recently reclaiming the $67,000 level amid heightened excitement around Bitcoin ETFs, may be signalling a looming reversal.
In Schiff’s perspective, ETFs are essentially “the tail that wags the Bitcoin dog,” propelling its ascent but potentially triggering a downfall due to a supply and demand mismatch when investors decide to sell.
Amid this Bitcoin mania, Schiff criticizes the media for diverting attention from gold’s breakout above $2,100, emphasizing that the cryptocurrency hype obscures the value of gold as a traditional safe-haven asset. He predicts that once the Bitcoin bubble bursts and attention returns to gold, retail investors will face substantially higher entry prices into the gold market.
Schiff’s pessimistic forecast stands in stark contrast to the overall enthusiasm for Bitcoin. However, it is important to note that his past Bitcoin predictions have not aged well.
Additionally, the upcoming Bitcoin halving event, which has historically triggered decent price increases, continues to attract investors and analysts.
The Bitcoin (BTC) price as of the time of writing is $66,154.25, representing an 18.86% surge in the past 7 days with a $1.29 trillion market cap, per data from CoinGecko.
