Universities Following the Footsteps of Institutional Investors into the Crypto Space

News / 26.01.2021

Harvard University, Yale University, Brown University, and the University of Michigan are among the universities using their multi-billion-dollar donations to buy cryptocurrency directly from exchanges.

Historically, universities have implemented two investment strategies with their donations: most have pursued very conservative investment strategies in well-known names and stable sectors. In contrast, some savvy schools in developing regions have taken risky bets to make big profits.

First Institutions, Now Universities

University donations have a unique legal structure that aims to raise investment for a specific purpose indefinitely. Likewise, crypto assets have been performing their best this year, making the sector a lucrative spot for many.

Harvard has the largest university fund, with more than $40 billion, while Yale has more than $30 billion, Michigan about $12.5 billion, and Brown has $4.7 billion. The crypto assets amount remains unknown, but it is most likely a small part.

Coinbase, Harvard, Yale Investment Workplace, Browns Funding Workplace, and Michigan College did not comment on the issue despite requests.

Institutional investment has had a significant impact on the Bitcoin price in recent months, citing large investors such as Guggenheim Partners LLC and Paul Tudor Jones as having helped raise interest and set a precedent.

MicroStrategy continues to buy bitcoins for a total of $10 million, with its last purchase on January 22.

CEO Michael Sailer also said the Nasdaq-listed Marathon Patent Group recently purchased $150 million worth of BTC and commented that another public company had accepted Bitcoin as a state reserve asset.

Grayscale is also returning to “buy mode” as Bitcoin was now 25% cheaper than its record level nearly three weeks ago. The total assets of institutional funds under management are $26.6 billion.

A Look Into Bitcoin Price

Yesterday there was a decent rebound in the Bitcoin price above the $33,800 and $34,000 resistance levels. BTC has even surpassed the $34,500 level and is above the 100-hour simple moving average.

However, the bulls struggle to gain strength above $34,500, and prices remain below $35,000. A maximum formed near $34,872 before the price started a new decline. There was a clear break under the $34,000 and $33,800 support levels.

Bitcoin price fell below the 50% Fib correction level; namely, the swing level’s upward movement from $30,943 to $34,872. It is currently trading well below $33,000 and testing a simple 100-hour moving average.

A downside break and a close below $32,000 could trigger fresh losses. In this case, the price will likely continue lower and support $30,800 or even $30,000.

Kyle is a tech lover and a huge fan of Satoshi. He has a passion for cryptocurrency and the splendid technology behind it all - the blockchain. He could sound gullible, but he believes bitcoin will hit 100k before the next halving.