Harvard’s legendary endowment fund has been put to use in the cryptocurrency sphere for the first time. While there were rumors that the world-renowned school had used its fund to invest in blockchain focused venture funds before, this is the first time that there is proof of direct investment into cryptocurrency on behalf of the venerable institution. This news was received from a recent filing with the Securities and Exchanges Commission (SEC).
The investment was in a company called Blockcstack which sold 95.8 million Blockstack Tokens to Harvard Management along with two other investors. While Harvard’s share of the tokens is less than five million it does represent a significant institutional invest directly in blockchain tokens that are not traded openly in the way Ethereum, Bitcoin and XRP are.
Blockstack looking for SEC approval
One reason that Harvard took the plunge is due to Blockstacks filing of an SEC Regulation A+ offering. The market sees Harvard’s investment as a sign that the filing will be approved by the SEC and would make it the first token offering of its kind. The net proceeds, says the company, will be used to increase the pace of the development of their decentralized computing and app platform.
Blockstack already has developers on board its platform and there are numerous apps that are already running. Since it is a privacy-focused network, all the users’ data is controlled strictly by the user. Among the apps currently running on the platform is Graphite, which is a decentralized competitor to Google Apps. Sigle is a decentralized and open source blogging platform that is looking to compete with WordPress. BitPAtron is what could possibly be the killer app, however.
It is a Patreon-like service for creatives and with the recent problems that creatives have had with mainstream services, many think it’s time for an alternative. BitParon is already live and with the number of big creatives leaving sites like Patreon and even Youtube, there is ample reason to believe that BitPatron could be what puts Blockstack on the map.
Institutional Investors coming in droves
Harvard’s entrance into the cryptocurrency sphere is further confirmation of what many in the industry have been saying for the last month. Institutional investors are coming back, armed with more knowledge and experience than before. It is because of this that many in the market are expecting Bitcoin to reach new highs of $20000 in the next two years.
Crypto exchanges will have less of an impact on the price of cryptocurrency once large institutions start muddying the waters. An example would be Grayscale, a cryptocurrency investment firm. The shares of their Grayscale Bitcoin Trust Fund have outpaced Bitcoin’s own growth over the last month.
The fund, which has recently been revealed to have in it’s Bitcoin wallets over 1% of the total BTC that will ever be mined, has posted a 47% gain. This is an amazing return all by itself, but when looked at the increase of Bitcoin itself over the same period it is amazing market watchers the world over. The fund based solely on Bitcoin rose 47% in the same time frame that Bitcoin rose 28%. It is because of examples like this that people are expecting Bitcoin to increase massively in value over the next two years.