Why This Student-Led Investment Fund Poured 7% of its Holdings into Bitcoin

Traditionally focused on stocks and bonds, this investment fund has now ventured into the realm of cryptocurrency.

The Stanford Blyth Fund, managed by students at the university, made a significant move in February by purchasing Bitcoin (BTC) at $45,000. The decision came after a compelling presentation by one of the scholars during a meeting.

As per a tweet by Kole Lee, a computer science major and a prominent figure in the Stanford Blockchain Club, the Blyth Fund has allocated approximately 7% of its total portfolio to Bitcoin following this purchase.

Stanford Endowment has bought Bitcoin at 45k.

In February, pitched IBIT to Blyth Fund, the student-run fund which manages a portion of Stanford’s Endowment.

Bitcoin is now ~7% of the portfolio.

Here’s the pitch that convinced them to buy: pic.twitter.com/nE7PuNF7Nw

— Kole Lee (@kolelee_) March 4, 2024

Originating in 1978 through the generosity of an anonymous donor in tribute to the renowned banker Charles Blyth, the fund oversees a substantial portion of Stanford University’s endowment. Its investment strategies span various assets, including stocks and bonds, aiming to support education by empowering students to invest while contributing 25% of returns to the university’s financial aid.

Lee’s presentation in February emphasized crypto market cycles, the influx of funds into exchange-traded funds (ETFs), and the potential of Bitcoin as a hedge against financial instability and conflict. Advocating for investment in the iShares Bitcoin ETF (IBIT) issued by BlackRock, the world’s largest asset manager, Lee’s proposal resulted in the purchase of BTC and the decision to allocate 7% of the portfolio to the leading digital asset.

Notably, IBIT stands out as the most substantial and high-performing product among the ten spot Bitcoin ETFs, boasting over $11 billion in assets under management and a daily inflow of $420 million as of March 4.

The Blyth Fund’s move into BTC signifies the increasing adoption of this relatively new digital asset. The introduction of spot Bitcoin ETFs in the United States has propelled Bitcoin adoption to unprecedented heights, attracting billions of dollars from traditional financial sectors.

Heightened ETF activity has also driven BTC prices to levels reminiscent of the previous bull cycle in November 2021. Bitcoin surpassed the $68,000 mark on a recent Tuesday before experiencing a significant correction. At the time of writing, BTC was trading at around $66,700, according to data from CoinMarketCap.

Meanwhile, March 5 saw record-breaking trading volumes for the ten ETFs, reaching approximately $10 billion, with IBIT alone accounting for a significant portion of this activity.

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