The University of Austin has announced the launch of a Bitcoin investment fund, becoming the first academic institution to launch such a fund.

Austin University Bitcoin Investment Fund

According to a report by the Financial Times, the school plans to raise a Bitcoin fund worth over $5 million as part of a $200 million endowment fund. Chun Lai, Chief Investment Officer of the University of Austin Foundation, stated in an interview with the Financial Times:

We don't want to be left far behind when the potential of cryptocurrency is significantly demonstrated

In addition, the University of Austin plans to hold Bitcoin for at least 5 years, and its senior vice president Chad Thevenot stated:

We believe that these assets have long-term value, just like our views on stocks or real estate

Are American university funds actively allocating Bitcoin?

Before the announcement of the launch of the Bitcoin fund by the University of Austin, other American universities had already started investing in Bitcoin. In fact, American endowments and foundations were among the first institutional investors to accept cryptocurrency. Yale University's endowment fund invested in two cryptocurrency venture funds in 2018, when the price of Bitcoin was less than one tenth of what it is today.

As early as October 28, 2023, regulatory documents showed that Emory University held over $15 million worth of Bitcoin through Grayscale's Bitcoin spot ETF, becoming the first US university fund to publicly hold a Bitcoin ETF.

However, many schools have publicly expressed a wait-and-see attitude towards cryptocurrency investment. Cornell University Professor Eswar Prasad said:

I am very concerned that institutional investors may enter purely speculative financial assets, and these assets may not provide much hedging compared to other risky assets

In addition, Brian Neale of the University of Nebraska Foundation also stated that due to the low adoption rate of cryptocurrency among allocators, he does not consider cryptocurrency to be an "institutional investable" asset class. He stated that he does not intend to enter this field until more peers join and the regulatory framework becomes clearer.