One of the biggest struggles of the crypto market has always been to acquire an institutional investor. In the earliest years the simple suggestion of institutional investors going into crypto was laughable. Even when bitcoin reached $20K, there were simply no viable custodial solutions.
Things have definitely changed over the last 2 years and now many institutions are slowly but surely, diving into crypto.
Harvard’s endowment recently invested $10 million into Blockstack’s token sale. Blockstack submitted the token filing to the U.S. Securities and Exchange Commission (SEC) and it notes that three affiliates of the Harvard Management Company actively participated in purchasing 95 833 333 Stack tokens.
The filing states that Zavain Dar, Rodolfo Gonzalez and Charlie Saravia purchased the 95 833 333 Stack tokens. The advisory board also consist of four other independent members, Arvind Narayanan, Ariana Simpson Catherine Tucker and Koen Langendoen.
There is no clear way to tell in how much of these 95 million Stack tokens the affiliates invested in. This is however, the first time a major university endowment directly invests in a crypto token.
It’s completely natural that an institutional investor is careful with a new market
Back in 2018, investment firms like Grayscale began to slowly enter the market. In a Q4 report, Grayscale reported that over 66% of all investments into their investment vehicles are from institutional investors.
According to the co-founder of BlockTower Ari Paul, this year we will most likely see more institutions dive into the market. The last few years have seen a great deal of improvement in the crypto industry’s ability to handle institutional money.
Some experts are questioning Harvard’s choice. Tokens in general are considered far more risky than major assets like bitcoin because of their short longevity.
After rounds of private comments, we’ve publicly filed for a $50M token offering with the SEC.
Upon qualification, our network and the Stacks tokens will be available to retail investors, including the US. https://t.co/OuPVbA4eJt
— Muneeb Ali (@muneeb) April 11, 2019
Most people believe that Harvard chose the tokens because of founders’ desire for it to be the first token to be registered with the SEC. That being said, Harvard is an institutional investor that is trusted worldwide.
Fairfax County, Virginia has already targeted a portion of its pension fund towards the Bitcoin and crypto industry.
Fidelty’s crypto head Tom Jessop, also stated that about 20% of 450 surveyed institutions currently say they have already invested into crypto and will do again in the near future.
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