Bitcoin Firm Unchained and University of Austin Establish First Bitcoin Endowment Fund

Unchained, a Bitcoin financial services firm based in Austin, Texas, has partnered with the University of Austin (UATX) to create a pioneering long-term endowment fund in Bitcoin. This groundbreaking initiative aims to raise $5 million, which will be invested in Bitcoin for at least five years, according to Unchained’s announcement.

A Trailblazing Endeavor

As the first-ever long-term endowment fund held in Bitcoin, this collaboration between Unchained and UATX seeks to incorporate the cryptocurrency into higher education, exploring innovative 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,” the announcement stated.

Kickstarting the Fund

Joseph Kelly, CEO of Unchained, personally donated 2 BTC, approximately $137,000 at current prices, to jumpstart the fund. “The world needs more great founders, and we are excited to bring together our communities to build something new,” Kelly said in a post on X on May 31.

Unchained will provide a secure collaborative custody vault to ensure the safety and integrity of the Bitcoin holdings. In addition to financial contributions, the partnership aims to foster community engagement through various activities, including joint marketing campaigns, events, guest lectures, and debates to educate the public on Bitcoin’s benefits and its potential to revolutionize finance and education.

Aligning with Core Missions

This initiative aligns with the core missions of both Unchained and UATX, which emphasize 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 cryptocurrency investments.

Growing Academic Interest in Crypto

Stanford University’s Blyth Fund increased its Bitcoin exposure 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 MIT have also explored crypto investments since as early as 2018, signaling a growing interest in digital assets within prestigious academic circles.

Hedge Funds Embrace Bitcoin ETFs

Out of the top 25 hedge funds in the United States, 13 have invested in spot Bitcoin ETFs during the first quarter. Point72, a renowned hedge fund with $34 billion in assets under management, has invested in the Fidelity Wise Origin Bitcoin Fund (FBTC), holding $77.5 million worth of FBTC at the end of the first quarter.

Other prominent hedge funds, including Elliott Capital led by Paul Singer and Millennium Management owned by Izzy Englander, have publicly shared their investments in these new funds. Millennium Management is the largest institutional holder, with approximately $2 billion invested as of March 31. Fortress Investment Group and Schonfeld Strategic Advisors are also notable investors.

While these hedge funds’ investments in spot ETFs may be seen as a long-term bet on Bitcoin’s potential price appreciation, these vehicles can serve multiple purposes, highlighting the diverse interest in cryptocurrency within the financial sector.