Stanford Students Allocate 7% of Portfolio to Bitcoin

The student-managed Blyth investment fund at Stanford has incorporated digital gold into its portfolio via BlackRock’s IBIT, allocating a 7% share.

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

The fund included the leading cryptocurrency when it was valued at $45,000.

Kole Lee, leader of Stanford’s blockchain club, proposed that Blyth invest in IBIT in February.

Founded in 1978 in honor of legendary banker Charles Blyth, the fund manages part of Stanford’s endowment, amounting to up to $1 million, investing in stocks, bonds, and other assets.

Lee justified the proposal with ETF inflows, cryptocurrency market cycles, and protection against “monetary chaos and war.”

In a conversation with Cointelegraph, the Bitcoin enthusiast explained that Blyth forms separate funds, within which students have the freedom to make investment decisions.

“I thought the ETF was a great opportunity for Blyth to buy the first cryptocurrency,” Lee admitted.

According to the student, surpassing the $69,000 price mark will trigger the liquidation of billions of dollars in short positions, leading to an intensified upward volatile movement.

On March 4, BlackRock submitted an SEC amendment to include Bitcoin in its Strategic Income Opportunities Fund with AUM of $36.5 billion.

The structure can acquire shares in funds that directly depend on the value of digital gold, including IBIT.

In recent trading days, the AUM of each competitor to Grayscale’s GBTC has increased by 30%. The leader, IBIT, has reached $11.53 billion.

Previously, ForkLog reported on the provision of access to the product upon request for clients of Bank of America and Wells Fargo.

Before that, media reported on Morgan Stanley’s launch of due diligence regarding the addition of spot Bitcoin ETFs to its brokerage platform.