Yale created some big waves recently by investing in cryptocurrency. Although the exact amount allocated from their endowment fund is undisclosed, they are taking part in a $400 million USD fund known as “Paradigm.” Few details have emerged from either Yale or Paradigm – the initial investment leaked from an anonymous source.
Cryptocurrency enthusiasts are eagerly awaiting the entry of institutional money into the market – and Yale choosing to invest is an important signal of confidence. Battered and beaten, the cryptocurrency market is in desperate need of good news. Another recent plunge further clarified that the prolonged bear market of 2018 is not yet over.
Yale Endowment Fund
The Yale Endowment Fund exists to earn money for Yale University – with frequent withdraws used to help fund school programs and research grants. Of the Ivy League schools, only Harvard has a larger endowment fund – but Yale’s fund director David Swensen is known for his excellent forethought and significant success. Now, Swensen is showing a willingness to invest in cryptocurrency – a potential indicator of more investors to come.
Now may be one of the best times to invest in recent history, with prices depressed across the board. Many coins are at year-long lows and ripe for investment before the return to a bull market. If Swenson, and others like him, are now investing, the market may be close to a surge. The recent dip in the stock market brought a cryptocurrency crash along with it, and investors are looking to capitalize. While some skepticism remains about cryptocurrency, blockchain technology itself grows increasingly accepted by the day.
The Paradigm Fund
The most enigmatic part of the recent announcement pertains to the ‘Paradigm Fund.’ No details about the fund itself exist, beyond a pair of names tied to the project. Coinbase co-founder Fred Ehrsam brings cryptocurrency expertise to the venture, while Sequoia Capital’s Matt Huang solidifies the financial aspect. The two have raised $400 million – a considerable amount, given the complete lack of information.
Sequoia Capital itself is included in the list of investors in Paradigm, alongside Yale’s Endowment Fund. Given the heavy hitting financial partners included in the project, emerging details may prove Paradigm to be of the utmost importance to cryptocurrency’s future. It may open the flow of institutional investment into the cryptocurrency market.
Article By: Adam Stone