The University of Austin has announced the launch of its Bitcoin investment fund, one of the first academic institutions to do so. The development follows a general trend of Bitcoin adoption in the United States.
The move by the University of Austin, spurred by Donald Trump’s gravitation towards Bitcoin and his promise to make the country the global capital of Bitcoin, is one of the few that has been hailed as the next-level adoption of the asset. Over the last five years, the digital asset class has outperformed others, despite the high volatility that has plagued the sector. The move, led by Bitcoin, had left people outside the action scratching their heads for missing out.
University of Austin to launch its Bitcoin fund
According to reports, the University of Austin will raise a $5 million Bitcoin fund, as part of its $200 million endowment fund. The move follows the decision of the Emory University of Georgia to disclose its holdings of Bitcoin exchange-traded funds (ETFs) in October 2024. The university became the first US university to report holding Bitcoin ETFs.
Bitcoin has been seeing more interest from institutional players, a move that could have a lasting positive effect on its price. While MicroStrategy is still the undisputed Bitcoin champion, others have joined the trendsetting company. According to the reports, the University of Austin will be looking at a minimum of a five-year Bitcoin holding strategy.
According to the University of Austin’s Senior Vice President for Advancement, Chad Thevenot, the university sees long-term value in holding the digital asset. “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,” he said.
While there is a shift among United States institutions towards Bitcoin, others like the University of Nebraska Foundation’s Brian Neale are still cautious about the industry, noting that there is no plan to jump in until the more experienced peers enter and regulatory clarity is achieved. Neale mentioned that he did not see crypto as an institutionally investable asset, highlighting its low adoption rate among allocators.
He called on the government and the required agencies to make regulations clear, urging the Securities and Exchange Commission (SEC) to issue guidance that will help bring the industry to global standards. Neale noted that he feels this administration can do it, adding that Donald Trump’s issuance of his crypto cannot help the industry go mainstream.
Bitcoin adoption may increase very soon
While crypto adoption has moved from a retail to an institutional level, there have been bottlenecks with adoption. However, there is a strong feel that it may become the future of investment, considering the shift in perception of the younger generations towards crypto. According to a recent Bitget research, about 20% of the Gen Z and Alpha interviewed were open to receiving their pensions in cryptocurrency.
In addition, about 78% of the respondents mentioned that they were open to receiving their pensions in an alternative retirement savings option, signaling a shift away from the traditional pension funds. While it remains unclear if a shift to crypto might be possible in the future, there is a consensus among the respondents, showing a preference for decentralized finance and other blockchain-based solutions.
According to Bitget CEO Gracy Chen, the survey signifies a wake-up call for the traditional finance industry, noting that the younger generations are seeing the opportunities in alternative pension savings methods. “Younger generations are no longer content with one-size-fits-all pension systems. They’re looking for modern solutions that give them more control, flexibility, and transparency,” Chen said.
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Source: https://www.cryptopolitan.com/university-of-austin-announces-bitcoin-fund/