Unchained, a Bitcoin financial services firm based in Austin, Texas, has joined forces with the University of Austin (UATX) to launch a groundbreaking long-term endowment fund.
The initiative aims to raise $5 million, which will be invested in Bitcoin for a minimum period of five years, according to an announcement from Unchained.
As the first-ever long-term endowment fund held in Bitcoin, the collaboration between Unchained and UATX seeks to integrate the cryptocurrency into higher education and explore alternative 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,” per the announcement.
Unchained CEO Donates 2 BTC
To kickstart the fund, Joseph Kelly, CEO of Unchained, made a personal donation of 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 in a post on X on May 31.
Very proud to help drive this initiative with @uaustinorg. The world needs more great founders and we are excited to bring together our communities to build something new! https://t.co/KTHKUa7r91
— Joseph Kelly (@josephkelly) May 31, 2024
Unchained will also provide a secure collaborative custody vault to store the endowment fund, ensuring the safety and integrity of the Bitcoin holdings.
Beyond financial contributions, the partnership aims to foster community engagement 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.
The 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 the world of 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 the potential of digital assets within renowned academic institutions.
Major Hedge Funds Embrace Bitcoin ETFs
Out of the top 25 hedge funds in the United States, 13 have entered the market by investing in spot Bitcoin ETFs during the first quarter.
For one, Point72, the renowned hedge fund with $34 billion in assets under management, has revealed its investment in the Fidelity Wise Origin Bitcoin Fund (FBTC).
Point72 held $77.5 million worth of FBTC at the end of the first quarter.
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 stands as the largest institutional holder of these funds, with approximately $2 billion invested as of March 31.
Other notable names among the 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.