A Peek into Brown's Bitcoin Adventure
In a Nutshell
- Brown University reported getting hitched with about $5 million worth of Bitcoin via BlackRock's iShares Bitcoin Trust ETF (IBIT).
- As per a new filing with the SEC, the university owned 105,000 shares of IBIT as of March 31, worth around $4.9 million at the time. No traces of these shares were found in the previous quarter's filing.
Dive into SCENE
Brown University undergoes significant cryptocurrency investment, acquiring millions of dollars' worth of BlackRock's Bitcoin exchange-traded funds (ETFs) for its portfolio.
The Ivy League powerhouse, Brown University, has taken a bold step into the cryptocurrency world, according to a SEC filing. The university has established a connection with Bitcoin, worth nearly $5 million, through BlackRock's iShares Bitcoin Trust ETF (IBIT).
The quarterly holdings report, submitted on Friday, reveals that Brown University owned 105,000 shares of IBIT, valued roughly $4.9 million as of March 31. Surprisingly, these shares were nowhere to be found in the previous quarter's filing.
As of now, the shares are valued around $5.8 million. This might seem like a sizable investment, but it's just a morsel for an endowment that swelled to over $7.2 billion at the conclusion of its 2024 fiscal year.
Take a Look at the Price Data
Over the last few decades, financial markets have seen a rapid expansion in complexity, and with the growth in the endowment's value, Brown has evolved accordingly. "Over the years, we have significantly increased our investment strategies to cater to the growing complexity of the financial markets," Brown's 2024 endowment report noted.
Brown's portfolio boasts a variety of holdings that include investments in stocks, bonds, private companies, real estate, and commodities.
Brown isn't the only university interested in Bitcoin. Back in May 2024, the University of Austin (UATX) partnered with Bitcoin services firm Unchained to create a $5 million Bitcoin endowment. This was followed by Atlanta's Emory University reporting nearly $16 million in Bitcoin exposure via the Grayscale Bitcoin Mini Trust in October. However, Emory's latest holdings report shows a reduction in shares but approximately $22 million in Bitcoin exposure due to the asset's price surge. It also discloses over $1 million worth of shares in leading crypto exchange, Coinbase.
More and more institutions, from publicly traded companies to world governments, are scrambling to get their hands on crypto's largest asset by market cap.
The price of Bitcoin swung back to nearly $98,000 on Friday for the first time since February, bouncing back from a local low around $75,000 in early April. At the moment, Bitcoin is priced at $96,330.
Decrypt made an attempt to reach out to Brown's investment office for their take on the matter, but alas, we didn't get ahold of a representative before publishing this article.
Edited by Andrew Hayward
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The Inside Scoop
Brown University's endowment has recently dipped its toes into Bitcoin via ETFs, kicking off its first crypto journey. Specifically, the university invested about $4.9 million in BlackRock's iShares Bitcoin Trust ETF during the last quarter, snatching 105,000 shares. This investment represents a minuscule slice of the endowment's overall assets—less than 0.07% of its $7.2 billion portfolio[2][5].
Key Insights:- Crypto Allocation: The addition of BlackRock's iShares Bitcoin Trust ETF constitutes a minor part of Brown's diverse portfolio that primarily focuses on traditional assets[2][5].- Risk Appraisal: According to a BlackRock study, a 1% to 2% allocation to Bitcoin introduces roughly the same risk as a large-cap tech stock. However, this exposure can drastically escalate portfolio risk if it surpasses this threshold[2].- ETF Preference: The selection of BlackRock's iShares Bitcoin Trust ETF provides a regulatory pathway into Bitcoin, managed by a renowned asset management firm, in line with institutional investment trends[2][5].
This move reflects a broader trend of institutional investors exploring cryptocurrency via ETFs, such as the State of Wisconsin Investment Board and the Michigan Retirement System[2]. It also resonates with Brown's financial strategy to ensure liquidity and diversification in response to shifting market conditions and potential funding challenges[4].
- Brown University's investment in Bitcoin through BlackRock's iShares Bitcoin Trust ETF (IBIT) is a testament to the university's exploration of the crypto world.
- The addition of IBIT shares, worth around $4.9 million at the time, represents a minor but significant step in Brown's diversification strategy.
- By choosing BlackRock's iShares Bitcoin Trust ETF, Brown University has demonstrated its alignment with the growing trend of institutional investors dabbling in cryptocurrency via ETFs.
- As more institutions, including public companies and world governments, express interest in cryptocurrency, particularly Bitcoin, it remains to be seen how this technology will reshape the traditional finance landscape.
