Yale University invest $400 million to crypto

Despite the fact that this year has not been happy with cryptocurrencies, soon everything can change. If we look at the last few years, we find that the fourth quarter of the year was always the most successful for cryptos. A few factors point out that this will be the case this year. One of them is, for example, the entry of large players into the crypto market. There is more and more them. Just recently, Yale University, whose Yale Endowment has a total value of up to $ 30 billion, has also been added to the very resounding currency.  


Swensen effect 

In order to make clear and clear the importance of this report, one must first draw attention to one of the most important people in the world of investments. David Swensen, also known as Warren Buffett of Yale University, has long been regarded as the top manager of investment portfolios. It's no coincidence that Swensen, with his investments and strategies, managed to raise the Yale endowment from $ 1 billion (from 1985 when CIO Yale Endowment) to $ 30 billion today. 

Over the past 20 years, the average annual growth rate of this investment fund has been one of the largest and most successful universities in the world, up to 11.8%. Also, this investment fund is among the largest university funds at all. He is currently in Harvard University, whose portfolio is worth up to $ 39.2 billion.  So the success of this investment mage is more than clear. Despite the fact that only a very small part of the portfolio it manages is currently in cryptos ($ 400 million), it all suggests that with its experience this step can bring a significant profit in the future. 


400 million to cryptocurrencies 

David Swensen, along with his team, has decided to invest $ 400 million in two different cryptographic companies. The first $ 300 million was invested in Andreesen Horowitz, which has already had several successful projects in the crypt world. For example, it invested in Coinbase in 2013. In addition, according to the company's CEO, Chris Dixon, Andreesen Horowitz has not sold any share of his portfolio. 

The remaining 100 million were invested by Yale University in a new project called Paradigm. It is no coincidence that David Swensen chose this project. This cryptographic fund was founded by people like Fred Ehrsam, co-founder of Coinbase or Mattom Huang, partner of Sequoia Capital. Why is it excellent for cryptocurrencies?  There are several reasons. The first is, for example, the fact that even a large institution like Yale University is not afraid to enter the cryptographic market. In part, we can also consider institutional investors to enter, although there is certainly a need for more investors than just one university.

Despite the fact that there is no major bank or investment firm, Yale Endowment has been in the market for some time and has a very promising reputation.  The second reason is that such a move by David Swensen attracts the attention of a large crowd of people. As we have already mentioned, Swensen is one of the most influential investors, and so it is very likely that not just an investor decides to enter the world of cryptocurrencies. 

Perhaps the last strong reason why such a step can be helped by cryptos is that, even though many people are trying to cover up dirt, there are still courageous investors who are afraid of entering these markets. After Jamie Dimon called Bitcoin Scam, Warren Buffett's rat poisoning, and Ken Griffin likened Bitcoin to the tulip maze, Swensen had invested nearly half a billion dollars in digital-related projects. This step will certainly improve the reputation of cryptocurrencies.