Report Suggests Yale University Investing in Two Cryptocurrency Funds

Just two weeks back, Bitcoin bull and hedge fund investor Michael Novogratz said that one of the biggest institutional endowments is pouring money into the cryptocurrency market. Novogratz made this revelation while appearing on the CNBC Fast Money show, however, he refuses to take names.

Now, according to the latest report from Bloomberg, Ivy League school Yale University is pouring money in the crypto market. Yale’s endowments is considered to be the second-largest in the education industry. Citing sources familiar with the matter, Bloomberg reports that Yale has invested in cryptocurrency fund Paradigm founded by Coinbase co-founder Fred Ehrsam, Pantera Capital veteran Charles Noyes, and former Sequoia Capital partner Matt Huang.

Paradigm has raised a total of $400 million to invest in the digital currency market, making it one of the largest investment funds along with Polychain Capital, Pantera, and Andreessen Horowitz (a16z).

Pantera Capital’s Noyes earlier said that Paradigm investments were majorly focused on early-stage altcoins, crypto exchange startups, and new blockchain projects. In a word with CNBC, David Swensen, the chief investment officer at Yale said that the university has invested in Andreessen Horowitz’s $300 million cryptocurrency fund.

However, a16z has previously made it clear that it will continue to invest in crypto assets in all market conditions. The firm said: “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.”

A number of institutional players have started to pump money in the digital currency market. Another Bloomberg report earlier this week suggested that “institutional investors are becoming more involved in the $220 billion cryptocurrency market than many observers may realize.”

Moreover, the investments coming from the institutional space has not gathered more steam yet because of the ongoing regulatory uncertainty in the market. But market experts like Novogratz and others think that the crypto market is already at a ‘classic bottom’ and institutional investors don’t want to wait further to enter the crypto market.

However, to be noted, there is no official word from Yale on this matter. But if this report turns out to be true, it would make a big impact on the institutional space that could trigger further fund flow in the crypto market.