Key Points
- Stanford University’s Blyth Fund has allocated about 7% of its portfolio to Bitcoin.
- The decision came after extensive research and was influenced by ETF inflows, crypto market cycles, and a hedge against monetary chaos and war.
Stanford University’s Blyth Fund, a student-run investment fund, has taken an innovative step by integrating Bitcoin into its portfolio. The fund, named after renowned banker Charles Blyth, has allocated about 7% of its portfolio to the digital currency.
Investing in Bitcoin
Historically, the Blyth Fund has focused on traditional investment strategies, primarily investing in stocks, bonds, and other assets. This marks the first time the fund is venturing into the realm of cryptocurrency.
The decision to invest in Bitcoin was not taken lightly. After months of research and deliberation, the fund decided to invest in BlackRock’s spot Bitcoin ETF, a proposal put forward by Kole Lee, the head of Stanford’s Blockchain Club, in early February.
Lee outlined three main factors that influenced the decision: ETF inflows, crypto market cycles, and the potential for Bitcoin to act as a hedge against monetary instability and war. He believes that the ETF presents a unique opportunity for the Blyth Fund to invest in Bitcoin.
BlackRock’s Bitcoin Endeavor
In related news, asset manager BlackRock is currently seeking approval from the Securities and Exchange Commission (SEC) for Bitcoin exposure. The company recently filed an amendment that would allow its Strategic Income Opportunities Fund (BSIIX) to include Bitcoin.
Furthermore, BlackRock’s recently launched spot Bitcoin ETF (IBIT) has been performing well. It saw an inflow of $420 million on March 4 alone and now manages over $11 billion in assets. Notably, this is the same fund that Lee proposed to the Blyth Fund.
While Bitcoin remains an enigma to many, it represents a unique opportunity for the students of the Blyth Fund. They see it as a chance to challenge conventional wisdom, embrace innovation, and shape the future of finance.
