Key Takeaways
- The University of Austin is raising $5 million to launch a Bitcoin endowment, making it one of the first educational institutions in the US to introduce a dedicated crypto fund.
- The proposed $200 million fund plans to hold the BTC for a minimum of 5 years, following the financial strategies of large-cap institutional investors such as StrategyB that have embraced the apex cryptocurrency as a long-term investment.
- In 2024, Emory University became the first American educational institution to declare Bitcoin exposure after it invested over $15 million in the Grayscale Bitcoin Trust (GBTC) ETF.
- A recent report by Bitget revealed that Gen Z and Alpha are leaning towards receiving their retirement funds in crypto as they have grown skeptical of legacy finance and want more flexibility, transparency, and control over their investments.
The University of Austin has announced plans to launch a first-of-its-kind Bitcoin (BTC) investment fund, making it one of the first educational institutions in the United States to introduce a dedicated crypto endowment fund.
The university seeks to raise $5 million in Bitcoin, as part of its $200 million endowment, following a broader trend of American institutions gradually embracing digital gold as a long-term investment asset.
University of Austin Embraces Bitcoin With $200 Million Endowment Fund
Chad Thevenot, Austin University’s senior vice president for advancement, emphasized Bitcoin’s long-term value prospect, even comparing it to traditional assets like stocks and real estate. He also noted that the university aims to hold its coins for at least 5 years, mirroring the strategy of major institutional investors such as StrategyB (formerly MicroStrategy) and BlackRock.
In an interview with the Financial Times, the University’s chief investment officer, Chun Lai, said they don’t want to be left behind when the flagship cryptocurrency’s potential finally materializes.
The fund’s launch comes less than four months after a regulatory filing revealed that the endowment of Georgia’s Emory University purchased $15.8 million worth of Bitcoin through Grayscale’s GBTC spot exchange-traded fund (ETF). This move marked the first time an educational institution’s endowment disclosed exposure to crypto-related investment.
Over 1,000 Companies Have Disclosed Bitcoin Exposure Through US ETFs In 2024
At the time, Bloomberg’s senior ETF analyst Eric Balchunas wrote in an X post that with Emory University reporting its Bitcoin position, every type of institution in the US was now represented in the 13 BTC-backed investment funds. He compared the feat to a tennis player winning all four grand slams before their 16th birthday – 2025 marked 16 years since Bitcoin was founded.
Analysts speculate that continued institutional adoption may significantly bolster Bitcoin’s price as large amounts of capital held by these companies are well-capable of making major market moves.
Meanwhile, the Rockefeller Foundation’s chief investment officer revealed that the $4.8 billion fund is considering increasing its exposure to crypto assets as its user base becomes more diversified.
Institutional adoption of US-based spot Bitcoin ETFs grew nearly 30% during the second quarter of 2024, with over 262 companies investing in the asset class. According to K33 Research’s senior analyst Vetle Lunde, 1,199 professional firms confirmed investments in one of the 13 spot BTC ETFs.
20% of Gen Z And Alpha Prefer Investing Retirement Funds In Crypto Assets
Beyond institutions, crypto assets are also gaining traction among retirement funds. According to a research report by Bitget, up to 20% of Gen Z and Gen Alpha are open to receiving pensions in cryptocurrencies, indicating a shift in how the younger generation is approaching financial planning.
The report highlighted that many of its respondents are skeptical of the old systems and are increasingly leaning towards Decentralized Finance (DeFi)and blockchain-based solutions. It also noted that 40% of Gen Z and Alpha individuals already hold cryptocurrency investments.
Bitget CEO Gracy Chen stated in the report that the survey’s findings are a wake-up call for the financial industry as the younger generations are no longer content with “one-size-fits-all” pension systems are looking for modern solutions that offer them more control, flexibility, and transparency.
Crypto venture capital funds have witnessed an influx of capital from endowments and foundations in recent years. California-based Pantera Capital has seen an eight-fold increase in the number of endowment and foundation clients since 2018.
Institutions View Bitcoin As A Leveraged Financial Asset, Unlocking New Ways To Raise Capital
American foundations and endowments were the first institutional investors to embrace crypto. Back in 2018, Yale University’s endowment fund invested in two crypto venture funds when the price of Bitcoin was a fraction of today’s figures. Companies are starting to view the flagship cryptocurrency not just as an investment, but as a leveraged financial asset that can utilized strategically.
Bitcoin investment and software development firm StrategyB has issued convertible debt notes and equities to fund BTC purchases. The company basically uses its existing Bitcoin holdings as collateral for capital market activities. Experts have highlighted this model as a new way to approach corporate financing and capital allocation, which comes in handy for companies looking for alternative treasury strategies in an era of rising interest rates.
While lack of regulatory clarity has been a primary concern for businesses looking to adopt Bitcoin for their balance sheet, the Trump administration’s push for robust cryptocurrency regulatory frameworks and clear accounting rules is providing institutions with more confidence in handling reporting and compliance risks associated with crypto assets.
With President Trump already supporting the creation of a national Bitcoin stockpile, even signing an executive order exploring its possibility, many states have followed suit. As of February 2025, at least 27 states, including Texas, Florida, Arizona, Michigan, and Utah, are planning to integrate Bitcoin into their financial strategies.
This trend reflects a growing recognition of Bitcoin as a valuable asset and a hedge against macroeconomic uncertainties.
At the time of writing, Bitcoin (BTC) is trading at $97,134 – up 0.07% in the last 24 hours.
