Stanford University’s student-run Blyth Fund, which manages a portion of the university’s endowment, has made a significant investment in Bitcoin, allocating around 7% of its portfolio to the cryptocurrency. This decision was announced by Kole Lee, a computer science major and leader at the Stanford Blockchain Club, who pitched the idea to the fund in February. Lee’s arguments for the investment included the potential for ETF inflows, the cyclical nature of the crypto market, and Bitcoin’s role as a hedge against monetary chaos and war.
The Blyth Fund, named in honor of banker Charles Blyth and established in 1978, is responsible for managing a six-figure portion of Stanford’s Endowment through investments in stocks, bonds, and other assets. With the addition of Bitcoin, the fund aims to provide its members with opportunities to invest in line with their skills and passions.
Lee also speculated that when Bitcoin breaks its all-time high of $69,000, there will be a significant impact on the market. He believes that billions of short positions will be covered, leading to increased excitement and a potentially volatile move to the upside.
In a separate development, asset manager BlackRock has filed an amendment with the Securities and Exchange Commission to include Bitcoin exposure in its Strategic Income Opportunities Fund (BSIIX), which currently manages $36.5 billion in assets. The amendment allows for the purchase of shares in funds that directly track the price of Bitcoin.
BlackRock’s recently launched Bitcoin ETF, IBIT, has been performing exceptionally well, surpassing $11 billion in assets under management and receiving a $420 million inflow on March 4. This success further solidifies the belief that cryptocurrencies are here to stay.
Overall, these recent developments highlight the growing acceptance and adoption of Bitcoin in traditional financial institutions and investment funds.