According to reports from reputable news sources, the endowment funds of famed Ivy League universities Harvard, Yale, and Brown have been discreetly buying cryptocurrency for about a year. Other colleges, including the University of Michigan, have also been participating in crypto exchanges.
Some of their involvement in the digital currency space began in 2018 with investments in crypto venture capital funds and blockchain technology. Sources indicate that these schools’ endowment funds have allocated very small percentages of assets in crypto.
Endowments are generally funds from charitable contributions which are often invested to generate higher returns. These funds enable research and teaching at institutions of higher learning. With over $40 billion in assets, Harvard holds the largest endowment. Following close behind are Yale with over $30 billion, Michigan with $12.5 billion and Brown with $4.7 billion. While it is not clear exactly how much of their funds are dedicated to crypto, it appears to be fractional percentages of their total funds.
The news of Yale’s 2018 investment in two crypto venture capital funds originally made headlines. Those funds were run by Andreessen Horowitz, Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang. Shortly afterward, other famed universities also began investing in crypto-focused venture capital funds, including Harvard, Stanford, Dartmouth, MIT, the University of North Carolina and Michigan. The most recent direct purchase of crypto assets appears to be the next logical step in their growing flirtation with digital currencies.
These large institutions’ comfort with crypto has also led to reports of increased interest in crypto from defined benefit pension plans, as well as public pension plans. Of course, with the tremendous public scrutiny they receive and their extensive compliance commitments, these entities would only buy crypto from regulated exchanges like Coinbase, Fidelity or Anchorage.
For anyone familiar with the humble origins of crypto, these are exciting developments. As more household names embrace crypto, its perceived risk decreases while the potential for wider adoption and higher coin values increases. Since META 1 Coin was designed as a coin for Humanity, no institutions are permitted to buy it. This also helps facilitate greater stability in coin value since the high-volume trading patterns that are characteristic of institutions can have a major impact on individuals’ accounts.
The wisdom of the META 1 approach can be appreciated by the recent volatility of Bitcoin. After a meteoric rise in recent months, the value of the coin dropped by over $10,000 per coin within days. Reports have surfaced that large amounts of Bitcoin were sold in batches, rather than in single large sale transactions to avoid telegraphing the sellers’ intentions to the marketplace. The net effect however was that sequential selling of large volumes of Bitcoin still placed a chill in the market as Bitcoin has remained in a holding pattern slightly above its former leg at $30,000 since its major drop.
By focusing on driving abundance for Humanity, and empowering stable growth, META 1 Coin aims to dramatically reduce the kind of volatility that other coins like Bitcoin have experienced. By doing the right thing with a focus on individuals – who have far fewer options for growing wealth than institutions – the effects of good karma (META 1 Coin’s longevity and growth) are encouraged.