The Stanford Blyth Fund, managed by students at the university, made a significant investment in Bitcoin (BTC) at a price of $45,000 in February. This decision came after a presentation by Kole Lee, a computer science major and leader at the Stanford Blockchain Club, who recommended allocating 7% of the fund’s portfolio to Bitcoin.
Established in 1978 in honor of banker Charles Blyth by an anonymous donor, the Stanford Blyth Fund manages a substantial portion of Stanford University’s endowment. The fund engages in investments in various assets, including stocks and bonds, with the goal of supporting education by providing students with real-world investment opportunities. Additionally, 25% of the fund’s investment returns are channeled back to Stanford University’s financial aid.
During the presentation to the fund, Lee emphasized the importance of understanding crypto market cycles, ETF inflows, and the role of Bitcoin as a hedge against monetary chaos and war. He specifically recommended investing in the iShares Bitcoin ETF (IBIT) issued by BlackRock, the largest asset manager globally. As a result of Lee’s pitch, the fund decided to purchase Bitcoin and allocate 7% of its portfolio to the digital asset.
The launch of spot Bitcoin ETFs in the United States has led to a significant increase in Bitcoin adoption and investment. This has resulted in billions of dollars flowing into the cryptocurrency market from traditional finance sectors. Notably, the iShares Bitcoin ETF (IBIT) has become one of the most popular ETFs, managing over $11 billion in assets with a daily inflow of $420 million as of March 4th.
The investment made by the Blyth Fund in Bitcoin reflects the growing acceptance of the digital asset. The rise in ETF volumes and investments has propelled the price of Bitcoin to levels not seen since the previous bull cycle in November 2021. Recently, Bitcoin surpassed the $68,000 mark before experiencing a significant correction, trading at $66,700 at the time of writing. On March 5th, the ten Bitcoin ETFs collectively reached a record trading volume of approximately $10 billion, with IBIT leading the way in terms of volume.
The Stanford Blyth Fund’s decision to invest in Bitcoin highlights the increasing interest in cryptocurrencies among traditional financial institutions. This move not only diversifies the fund’s portfolio but also contributes to the broader adoption of Bitcoin as a legitimate asset class.
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