The famous fund manager invests Yale's money in cryptographic funds.

On October 5, 2018, an article published by Bloomberg said the Yale University Investment Office, under the direction of famed director David Swensen, had allocated an allocation to Paradigm, a new cryptocurrency fund that raised $ 400 million. CNBC added to the report that Yale had also invested in Andreessen Horowitz's $ 300 million cryptography fund before the Fund's fundraising closes in June.

This represents a considerable advantage for the asset class, as Swensen has invented the endowment model to invest, revolutionize the industry and use it to pass Yale's endowments of a little more than $ 50,000. 39 billion dollars in 1985 to 29.4 billion dollars (a feat that landed in 2008 in the "Hall of Fame" of HFM (Institutional Investor). Considered as the gold standard for other universities Yale 's incursion into the besieged asset class could mark a positive change in the way institutions look at virtual currencies.

While Yale and Swensen's incursion into cryptography could be considered surprising, the investments announced have features that indicate that this evolution is a natural process. The investment in Paradigm demonstrates confidence in a cryptographic fund led by Fred Ehrsam (co-founder of Coinbase), Matt Huang (former director of venture capital giant Sequoia Capital) and Charles Noyes (formerly of Pantera Capital). Sequoia Capital would also be an investor in Paradigm.

Similarly, the investment in Andreessen Horowitz's fund shows Yale's apparent willingness to trust the largest venture capital firms for their cryptocurrency investments. Both investments are expected to represent only a small portion of the replacement allocation by asset class (nearly 60%) of the endowment fund (ie venture capital, hedge funds and private equity funds), which corresponds to Yale's allocations for 2017 and 2018.

Neither Yale nor the purported beneficiaries of these investments have yet responded to the request for comment from Bitcoin Magazine at the time of writing. No response to inquiries was provided in the Bloomberg or CNBC reports at the time of publication of these publications.