Stanford to Invest in Bitcoin ETF via Student-Run Fund

Stanford to Invest in Bitcoin ETF via Student-Run Fund

Financial institutions are not the only firms that are taking an active interest in Bitcoin spot ETFs listed in the United States. Stanford University’s Blockchain Club leader Kole Lee recently presented the idea to invest a student-led fund to invest in BlackRock-issued Bitcoin spot ETF in February.

As per this proposal, the investment fund that manages a portion of Stanford University’s expendable pool intends to allocate 7% of portfolio into the Bitcoin investments.

Blyth Fund Allocates 7% of Its Portfolio to Bitcoin

Kole Lee, a computer science genius and head of the Stanford Blockchain Club, declared that a student-run fund namely Blyth Fund is working on investing around 7 percent of its capital in Bitcoin portfolio as part of the pitch in February. Lee noted that the fund purchased Bitcoin at $45K. Later he stated that he also suggested investing in BlackRock’s IBIT ETF in Blyth Fund.

He explained that the fund managers intend to remain objectively bullish while addressing cynicism surrounding cryptocurrency investments in TradFi. At the same time, Lee noted that this investment is based on several factors namely ETF inflows, crypto market rotations, and using hedge against monetary chaos and war.

It is important to note that the Blyth Fund was founded in 1978 to honor the illustrious Charles Blyth. This student-led fund has now evolved into a 6-figure part of Expendable Funds Pool at Stanford.

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Historically, Blyth Fund has invested in traditional investment instruments such as stocks, bonds, and similar investment products. However, under the lead of Lee the fund recently added Bitcoin.

Speaking with Cointelegraph, Lee noted that the Blyth Fund is a student-led fund that assists members in developing their skill sets and passions. He told the media that Blyth is separately managed funds.

He further noted that this fund is an integral part of the expandable fund pool and grants discretionary investment insights to participating students. Therefore, he stated that adding Bitcoin ETF could be a wonderful opportunity for Blyth to grow its capital and revenue margins.

Lee also speculated that during the last Bull Run, Bitcoin hit $70K. He projected that if the previous ATH is broken billions of short positions will be concluded and investors will become excited about new ATHs that could increase upside volatility.

On the other hand, BlackRock, the firm leading the spot Bitcoin ETF market in the United States, recently amended an application with the Securities and Exchange Commission. The 4th March amendment was directed towards incorporating Bitcoin to the Strategic Income Opportunities Fund (BSIIX).  

BlackRock management has expressed an aim to purchase the shares of spot Bitcoin funds. As per an official statement, this fund can acquire shares in ETPs that track the direct performance of Bitcoin and hold the cryptocurrency in reserves. These fund reserves were sponsored by BlackRock.

BlackRock’s Bitcoin Exposure

As per the SEC filings, BlackRock has declared that its fixed-income fund SIO currently manages $36.5 billion in AUM. Under this context, the spot Bitcoin ETF named IBIT launched on 11th February continues to be the best-performing fund among batch of 10 recently debuted funds. IBIT recorded $11 billion in AUM this week and recorded an inflow of $420 million on 4th March.

BlackRock set the trend for Bitcoin spot ETFs in traditional finance sector. After the successful launch of IBIT, the asset management behemoth filed for an ETH ETF in November, 2023. Naturally, the move has set the scene of a spot ETF race based on Ethereum.

As per a Cryptoslate article, Franklin Templeton has become the latest asset management firm to file for a spot ETH ETF on 12th February.

The firm has appointed Coinbase as digital asset custodian and BNY Mellon as cash storage facilitator. Other financial institutions that have already joined are Ark Invest and 21Shares with an Ethereum spot ETF application amendment on 7th February.

The article has revealed that there are now 8 financial institutions that have applied for an Ethereum spot ETF. SEC officials are set to issue a verdict on VanEck’s ETH ETF on 23rd May, 2024.

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