In a recent filing with the U.S. Securities and Exchange Commission (SEC), Emory University has disclosed its holdings in Grayscale’s Bitcoin Mini Trust and Coinbase, marking the first endowment to invest in the spot bitcoin exchange-traded funds (ETFs).
A New Milestone for Institutional Investors
Atlanta-based Emory University joins the ranks of institutional investors taking a shine to bitcoin. The university’s ownership of more than $15 million worth of shares in the Grayscale Bitcoin Mini Trust is a significant development, according to Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence.
A Risk-Averse Approach
Endowments, like pension funds, typically prefer a risk-averse approach to their investments. Emory’s allocation into a bitcoin ETF is therefore notable, as it represents a departure from the traditional cautious investing style of these institutions.
The First Endowment to Report a Bitcoin ETF Position
According to Balchunas, no other endowment has previously publicly reported a bitcoin ETF position. The announcement marks a significant milestone in the adoption of bitcoin by institutional investors.
Emory’s Holdings and Total Assets
As per the university’s most recent annual report, its total assets stood at $21 billion as of August 2023. The university holds 4,312 shares of Coinbase, valued at $922,639 as of press time.
A Latecomer to the Game
Grayscale’s mini BTC fund launched relatively late, after the asset manager’s flagship bitcoin trust (GBTC) bled large amounts of assets due to its high fee. Despite this, the newer product has quickly gained traction and now ranks sixth by assets under management with roughly $2.3 billion worth of bitcoin.
Universities Taking a Shine to Bitcoin
CoinDesk has previously reported on universities investing in bitcoin, including Harvard, Yale, and Brown. These institutions have been buying the cryptocurrency directly from Coinbase since 2019.
Implications for Institutional Investors
Emory University’s move into the spot bitcoin ETFs is likely to set a precedent for other institutional investors. As more institutions take notice of the potential returns on investment in bitcoin, it may lead to increased adoption and further growth in the market.
The Rise of Bitcoin ETFs
Bitcoin ETFs have gained popularity among institutional investors due to their accessibility and ease of use. With Emory University’s announcement, every institution type is now represented in the btc etf 13Fs (endowment, bank, HF, Ins Co, Advisor, Pension, PE, Holding Co, Vc, Trust, Family Office, Brokerage).
A Growing Trend
Pension funds have previously reported holdings of bitcoin ETFs. For instance, the State of Wisconsin has invested in these funds, and Jersey City’s municipal pension plan announced that it would allocate 2% of its assets into the ETFs.
Conclusion
Emory University’s decision to invest in the spot bitcoin exchange-traded funds marks a significant milestone for institutional investors. As more institutions take notice of the potential returns on investment in bitcoin, it may lead to increased adoption and further growth in the market.
