Bitcoin Firm Unchained Teams Up with University of Austin for Bitcoin Endowment Fund
Unchained, a Bitcoin financial services company based in Austin, Texas, has partnered with the University of Austin (UATX) to establish an innovative long-term endowment fund. The goal is to raise $5 million, which will be invested in Bitcoin for a minimum period of five years, according to an announcement from Unchained.
This collaboration between Unchained and UATX marks the first-ever Bitcoin-based long-term endowment fund and aims to incorporate cryptocurrency into higher education while exploring alternative financial strategies.
The announcement states, “By incorporating bitcoin into its endowment, UATX is setting a precedent for other academic institutions to explore alternative and potentially more resilient financial models.”
To kickstart the fund, Joseph Kelly, CEO of Unchained, personally donated 2 BTC, equivalent to approximately $137,000 at current prices. “The world needs more great founders, and we are excited to bring together our communities to build something new,” said Kelly.
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 aims to engage the community 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.
This 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 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 digital assets within renowned academic institutions.
Major Hedge Funds Embrace Bitcoin ETFs
During the first quarter, 13 out of the top 25 hedge funds in the United States have entered the market by investing in spot Bitcoin ETFs.
Point72, a renowned hedge fund with $34 billion in assets under management, has disclosed its investment in the Fidelity Wise Origin Bitcoin Fund (FBTC). By the end of the first quarter, Point72 held $77.5 million worth of FBTC.
Prominent hedge funds like Elliott Capital, led by Paul Singer, and Millennium Management, owned by Izzy Englander, have also publicly announced their investments in these new funds. Millennium Management is 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.
While these hedge funds’ purchases of spot ETFs may be seen as a long-term bet on the potential price appreciation of Bitcoin, it’s important to note that these vehicles can serve other purposes as well.
