Key Takeaways
- • Harvard, Yale, Brown and the University of Michigan, among other U.S. college endowments, have been buying cryptocurrency directly on exchanges such as Coinbase for roughly a year, according to two sources cited by CoinDesk.
- • Harvard's endowment (over $40 billion), Yale (over $30 billion), Michigan (about $12.5 billion) and Brown ($4.7 billion) are the institutions named, though none confirmed the holdings and the size of each crypto allocation is unknown.
- • The allocations are likely a fraction of a percent of total assets, per the reporting, and one source suggested some accounts may have been held for as long as 18 months.
- • The move marks a shift from 2018, when Yale and other endowments backed crypto-focused venture funds, to direct crypto asset purchases.
Summary
Several of the largest U.S. university endowments have been quietly buying cryptocurrency for about the past year through accounts held at Coinbase and other exchanges, CoinDesk reported, citing two sources familiar with the situation. According to the report, Harvard, Yale, Brown and the University of Michigan, along with several other colleges, have been buying crypto directly on exchanges. One unnamed source said, "A lot of endowments are allocating a little bit to crypto at the moment."
Yale and Brown did not respond to requests for comment before publication. The Harvard and Michigan endowments declined to comment, and Coinbase also declined to comment. CoinDesk noted that university endowments received a single mention in Coinbase's 2020 annual report, without any institutions being named. One source said some of the accounts may have been held for as long as 18 months, and suggested the endowments would likely discuss the holdings publicly later in the year.
The endowments named in the report are substantial. Harvard's is the largest university endowment at over $40 billion in assets, followed by Yale at over $30 billion, Michigan at about $12.5 billion and Brown at $4.7 billion. The amount each fund has allocated to crypto is unknown, but CoinDesk's sources indicated it is likely a fraction of a percent of total assets.
The reported purchases follow a earlier phase of institutional engagement. In 2018, Yale Chief Investment Officer David Swensen backed two crypto-focused venture funds, one run by Andreessen Horowitz and another launched by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang. Harvard, Stanford, Dartmouth, MIT, the University of North Carolina and Michigan later also backed crypto venture funds. CoinDesk observed that some of those schools now appear to be investing directly in crypto assets.
Yale and Brown did not respond to requests for comment before publication. The Harvard and Michigan endowments declined to comment, and Coinbase also declined to comment. CoinDesk noted that university endowments received a single mention in Coinbase's 2020 annual report, without any institutions being named. One source said some of the accounts may have been held for as long as 18 months, and suggested the endowments would likely discuss the holdings publicly later in the year.
The endowments named in the report are substantial. Harvard's is the largest university endowment at over $40 billion in assets, followed by Yale at over $30 billion, Michigan at about $12.5 billion and Brown at $4.7 billion. The amount each fund has allocated to crypto is unknown, but CoinDesk's sources indicated it is likely a fraction of a percent of total assets.
The reported purchases follow a earlier phase of institutional engagement. In 2018, Yale Chief Investment Officer David Swensen backed two crypto-focused venture funds, one run by Andreessen Horowitz and another launched by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang. Harvard, Stanford, Dartmouth, MIT, the University of North Carolina and Michigan later also backed crypto venture funds. CoinDesk observed that some of those schools now appear to be investing directly in crypto assets.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.