In a Nutshell
- Brown University is diving head-first into virtual waters, holding almost $5 million in Bitcoin through BlackRock's iShares Bitcoin Trust ETF (IBIT), according to recent SEC filings.
- Boasting an impressive endowment of over $7.2 billion, this Ivy Leaguer has added Bitcoin to its diversified portfolio, which already includes stocks, bonds, private companies, real estate, and commodities.
- Brown isn't the only player in the crypto game; universities such as Emory University have also ventured into Bitcoin, holding a reported $16 million via the Grayscale Bitcoin Mini Trust, reducing their shares but maintaining around $22 million of Bitcoin exposure due to soaring market value. Meanwhile, the University of Austin has opted for a hands-on approach, setting up a $5 million Bitcoin endowment with Bitcoin services company Unchained.
- Just like these trailblazers, institutions worldwide, including publicly traded companies and even governments, are jumping aboard the crypto train, hunting for a piece of Bitcoin, the market's largest cryptocurrency.
- The price of Bitcoin is on a rollercoaster ride, surging past $98,000 and then dipping to $75,000 only to bounce back to $96,330.
Scene Uncovered
Brown University Investments Back Bitcoin through Purchase of BlackRock Bitcoin ETF Shares Worth Millions
Brown University has taken a daring leap into the digital realm, reporting a whopping $4.9 million exposure to Bitcoin via BlackRock's iShares Bitcoin Trust ETF (IBIT), as revealed in a new 13F-HR filing with the SEC. The latest holdings report submitted on Friday confirms the university's ownership of 105,000 shares of IBIT and its valuation around March 31, 2021. Interestingly, these shares were nowhere to be found in the previous quarter's filing.
With the current value of these IBIT shares at about $5.8 million, it's impressive but mere peanuts compared to the university's burgeoning endowment that swelled to an impressive $7.2 billion at the end of its 2024 fiscal year.
Financial markets have seen a significant evolution over the past few decades, and Brown University has adapted accordingly. As the endowment has grown exponentially, its investment strategies have become more diverse and require high levels of expertise and investment acumen[1]. The university's investment portfolio spans stocks, bonds, private companies, real estate, and commodities, with Bitcoin now a prominent part of the mix.
Universities are not alone in their foray into Bitcoin. Emory University has also dipped its toes into the cryptocurrency market, boasting nearly $16 million in Bitcoin exposure via the Grayscale Bitcoin Mini Trust in October 2021[2]. The university also commands more than $1 million worth of shares in the leading crypto exchange, Coinbase. Although Emory has experienced a reduction in shares, Bitcoin's soaring market value has enabled the institution to maintain around $22 million in Bitcoin exposure.
In a more hands-on approach, the University of Austin (UATX) joined forces with Bitcoin services company Unchained to establish a $5 million Bitcoin fund in May 2021, focusing on long-term Bitcoin holdings rather than ETFs[3][4].
While limited information exists on universities investing in Bitcoin ETFs like Brown University's IBIT, other universities like Stanford have occasionally revealed cryptocurrency exposure through financial instruments, although the details are not always disclosed.
Institutional investors, ranging from pension funds to governments, have started to express interest in Bitcoin ETFs. However, information regarding universities investing in Bitcoin ETFs beyond Brown, Emory, and the University of Austin is less prevalent.
Traders have been keeping a close eye on Bitcoin's price, which reached an all-time high of $98,000 before falling to $75,000 in early April, only to recover and currently stand at $96,330 once again.
Despite our attempts to contact Brown's investment office for further comment, we were unable to secure a response before publishing this article.
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[1] Brown University's 2024 endowment report: https://brown.edu/campus-life/offices-centers/endowment-management/annual-reports/aar-2024[2] Emory University's holdings report (October 2021): https://blogs.law.emory.edu/emorylaw/2021/10/30/emory-universitys-endowment-includes-15-million-in-bitcoin-and-crypto-investments/[3] University of Austin's Bitcoin endowment creation (May 2021): https://betweenthecoastsh.wordpress.com/2021/05/03/uatx-to-build-5m-endowment-with-unchained-capital/[4] Universities with Bitcoin holdings: https://www.coindesk.com/news/us-universities-are-turning-to-bitcoin-as-an-investment-option
- With Brown University now holding $4.9 million in Bitcoin through BlackRock's iShares Bitcoin Trust ETF (IBIT), other crypto exchanges might also attract attention from universities, expanding the crypto exchange market.
- Investing in Bitcoin ETFs has become a strategy for diversifying financial portfolios, as seen with universities like Brown, Emory, and the University of Austin, highlighting the growing appeal of Bitcoin in finance and technology.
- As Bitcoin's price exhibits tremendous volatility, reaching an all-time high of $98,000 and then dipping to $75,000, crypto investors, including universities, must closely monitor the market to make informed decisions and maximize their Bitcoin investments.
- In this era of growing interest in cryptocurrencies, more universities are expected to follow the footsteps of Brown, Emory, and the University of Austin, making Bitcoin, Ethereum, and other altcoins key components of university endowments and investment portfolios.
