Yale University Delves Into Cryptocurrency Market Yale University Delves Into Cryptocurrency Market
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Yale University Delves Into Cryptocurrency Market

U.S. Ivy League school Yale University has allocated money from their sizable endowment to invest in digital asset investment fund Paradigm, Bloomberg reports.

An Ivy League Endorsement

Paradigm was started by Fred Ehrsam, co-founder of Coinbase, along with Mark Huang of Sequoia Capital and Charles Noyes, formerly of Pantera Capital. According to reports, the fund has raised around $400M from investors such as Yale University. Itโ€™s unclear at this point exactly how much of Yaleโ€™s nearly $30BN endowment theyโ€™ve put into Paradigm, and as of this writing, they could not immediately be reached for comment.

Paradigm, according to Noyes, plans to invest the money into early-stage cryptocurrency projects, new blockchains, and exchanges. According to Bloomberg, he was invited to join Paradigm by its other two founders after less than a year at Pantera.

โ€œI wanted to try my hand at sort of re-architecting the internet in a way that I think is more democratized,โ€ he said of his decision to join the fund.

Some say that Yaleโ€™s endorsement of Paradigm could bolster confidence in the fund, and in the cryptocurrency market as a whole, since Yaleโ€™s endowment manager David Swensen has a track record for savvy investing. Swensen has managed the second-largest endowment in U.S. higher education for 30 years and done it well enough that others have tried to replicate his efforts.

This isnโ€™t the first time Yale has invested in cryptocurrency, either. According to CNBC, theyโ€™ve invested money from their endowment into Silicon Valley venture capital firm Andreessen Horowitzโ€™s $300M crypto investment fund as well.

As CNBC points out, the two investments represent a tiny portion of the billions that Swensen is managing, but a successful return on that investment could convert some market holdouts into crypto investors.

A Market in Need of a Boost

After a surge in 2017, cryptocurrencies have taken a downward turn. Bitcoin, in particular, has gone down in market value 50 percent, and the entire cryptocurrency market has dipped 63 percent, according to data pulled from

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Fears over the lack of consistent regulation in the crypto market also have investors worried theyโ€™ll sink millions into digital assets only to have it vanish in the wake of a hacking attack or market collapse. Top investors like Warren Buffet have bashed crypto, calling it โ€œrat poison.โ€

There are, however, signs of a turnaround. Market experts are predicting that Bitcoin has hitย its bottom and will make a comeback. State and federal regulatory agencies like the SEC and CFTC are joining the hunt for bad actors and shutting down the ones they find. Makers of cryptocurrency accessories like cold wallets have built-in extensive security measures to keep digital assets from being stolen.

None of the above concerns have deterred firms like Andreessen Horowitz and Paradigm, who say they plan on holding their investment for the long term.