Yale investing in a crypto fund is actually huge news. The impact on prices will be gradual, but reduce the time to adoption.
bloomberg.com/news/articles/…
bloomberg.com/news/articles/…
Let me unpack this for you. David Swensen, the CIO of Yale's endowment, is the mother eagle in endowment investing land.
Yale goes out there and attacks new and weird investments. They are widely considered to be *the* thought leader in the allocator space.
Yale goes out there and attacks new and weird investments. They are widely considered to be *the* thought leader in the allocator space.
Yale, as mother eagles do, regurgitate their food into the happily accepting mouths of other pleb endowments who happily replicate the "Yale Model" because they severely lack an imagination.
Do you know what the first rule of endowment investing is? Don't get fired, because you'll have no job to fall back on. Most endowment investors are incredibly risk averse because they'd rather be followers than work at McDonalds.
Swensen investing in crypto land significantly reduces the career risk for anybody else at an Endowment looking to pitch a crypto investment. You'll see a slow trickle of larger allocators following Yale into this space as they hunt for new forms of yield.
To be clear, this is not huge in the sense that we'll see funds marketing buying bitcoin back to 20k. But it's huge in the signal that it sends to other allocators: "it's okay people, papa bear is buying bitcoin, too."
Citation: myself, former endowment investing person, DM me if you're a fund and want some more of this wisdom.
p.s. I am convinced that most institutional allocators would follow Swensen off of a cliff. Paradigm is going to be getting a lot of phone calls.
