University of Austin to launch $5M Bitcoin fund with five-year plan

The University of Austin is launching a Bitcoin (CRYPTO:BTC) investment fund worth $5 million, marking its entry into cryptocurrency investments. 

This fund is part of the university’s broader $200 million endowment and aims to hold Bitcoin for at least five years.

Chun Lai, the university’s chief investment officer, emphasised that the move is driven by the desire not to miss out on cryptocurrency’s potential.

“We don’t want to be left behind when their [cryptocurrency’s] potential materialises dramatically,” Lai told the Financial Times in a February 9 report.

The University of Austin’s decision comes after Emory University reported a $15 million Bitcoin investment through Grayscale’s Bitcoin ETF in October 2024.

This marked the first U.S. university to invest in Bitcoin ETFs, highlighting the growing interest in digital assets in educational institutions.

Bitcoin’s increasing institutional adoption is seen as a factor that could drive up its price, as large investors can significantly impact the market.

The University of Austin plans a long-term holding strategy, similar to traditional investments like stocks and real estate.

Chad Thevenot, senior vice president for advancement at the University of Austin, shared that the university views Bitcoin as a long-term investment with potential value.

“We think there is long-term value there, just the same way that we might think there is long-term value in stocks or real estate,” Thevenot said.

This move by the University of Austin reflects a broader trend among institutions toward cryptocurrency investments.

At the same time, cryptocurrencies are gaining popularity in other sectors, such as retirement funds, with younger generations increasingly favoring decentralised finance solutions.

A report by Bitget Research revealed that 20% of Gen Z and Gen Alpha are open to receiving pensions in cryptocurrency, signaling a shift in investment preferences.

At the time of reporting, the Bitcoin (BTC) price was $95,944.49.