On 5th October, Yale University, the high-end Ivy league school was reported to have made a huge investment in a cryptocurrency fund called Paradigm. The fund was started by Fred Eshram, the Co-founder of the biggest cryptocurrency exchange Coinbase and Matt Huang, the former partner at Sequoia Capital.
The fund is reported to have raised about $400 million with the contribution of the Yale University, said a source with adequate knowledge on the subject. Furthermore, Yale is estimated to possess an endowment of $30 billion and is now counted among the large investors in the cryptocurrency space. However, there are no reports on how much investment was made by the institution.
According to experts, this is considered to be the next big thing in the cryptocurrency space as the members of the crypto-verse have been waiting on a Bitcoin ETF that may ensure the involvement of institutional funds into the crypto-market. The reason why not many institutional investors are inclined to put their money into cryptocurrency funds is due to a lack of regulatory framework and an infrastructure to guard investor interests in the digital asset class.
A Redditor named BarkingThought commented on the news and wrote:
“This is actually huge news. It signals to other large and prestigious institutions that crypto is “ok” to invest in and there is no longer reputational risk in doing so.”
Mizzymax, another Reddit user and a cryptocurrency space enthusiast also said:
“Remember when crypto was thought to only be used for illegal criminal activity. Haha! Yea those days are gone”