Unchained, a Bitcoin financial services company based in Austin, Texas, has partnered with the University of Austin (UATX) to establish a groundbreaking endowment fund. The goal of the initiative is to raise $5 million, which will be invested in Bitcoin for a minimum of five years. This collaboration between Unchained and UATX aims to integrate cryptocurrency into higher education and explore alternative financial strategies.
By incorporating Bitcoin into its endowment, UATX is setting a precedent for other academic institutions to explore alternative and potentially more resilient financial models, according to the announcement.
To kickstart the fund, Joseph Kelly, CEO of Unchained, personally donated 2 BTC, equivalent to approximately $137,000 at current prices. Unchained will also provide a secure collaborative custody vault to store the endowment fund, ensuring the safety and integrity of the Bitcoin holdings.
In addition to financial contributions, the partnership will focus on fostering community engagement through various means. Joint marketing campaigns, events, guest lectures, and debates will be organized to educate the public about the benefits of Bitcoin and its potential to revolutionize finance and education.
The initiative aligns with the core missions of both Unchained and UATX, emphasizing principles such as sound money, resistance to censorship, and challenging the status quo.
While UATX is pioneering the Bitcoin endowment fund, it is not the first American university to venture into the world of cryptocurrencies. Stanford University’s Blyth Fund increased its exposure to Bitcoin in March by allocating 7% of its portfolio to the digital asset through BlackRock’s spot Bitcoin ETF. Ivy League institutions like Harvard, Yale, and the Massachusetts Institute of Technology (MIT) have also explored crypto investments since as early as 2018, signaling a growing interest in the potential of digital assets within renowned academic institutions.
In the first quarter, 13 out of the top 25 hedge funds in the United States entered the market by investing in spot Bitcoin ETFs. Major hedge funds such as Point72, Elliott Capital, and Millennium Management have publicly shared their investments in these new funds. Millennium Management stands as the largest institutional holder of these funds, with approximately $2 billion invested as of March 31. Other notable investors include Fortress Investment Group and Schonfeld Strategic Advisors.
These hedge funds’ purchases of spot ETFs may be seen as a long-term bet on the potential price appreciation of Bitcoin, but it’s important to note that these vehicles can serve other purposes as well.