Stanford University’s Blyth Fund Invests 7% Portfolio in Bitcoin

In a groundbreaking move, Stanford University’s Blyth Foundation has announced that it has allocated a significant 7% of its portfolio to Bitcoin investments.

The Blyth Fund, established in 1978 as a tribute to the renowned banker Charles Blyth, operates under the management of Stanford students. This student-run investment club oversees a substantial portion of Stanford University’s endowment, engaging in a diversified investment approach that includes stocks, bonds, and now, Bitcoin.

Blyth Fund and Bitcoin Adoption

Kole Lee, a computer science major and leader of the Stanford Blockchain Club, revealed the foundation’s BTC allocation on March 5. Lee, who played a pivotal role in advocating for the inclusion of Bitcoin, highlighted that the university’s student-run Blyth Fund purchased Bitcoin at $45,000 in February.

Pitch to Blyth Fund

Lee’s persuasive pitch to the Blyth Fund focused on three crucial factors: the influx of funds into exchange-traded funds (ETFs), the cyclic patterns observed in the bitcoin market, and the role of Bitcoin as a hedge against “monetary chaos and war.”

Lee emphasized the Blyth Fund’s commitment to aligning investments with the skills and passions of its members. He elaborated, stating, “The Blyth Funds are separately managed funds that are part of the expandable fund pool and give discretion in investing decisions to students. Thus, I thought the ETF was a wonderful opportunity for Blyth to buy Bitcoin.”

Lee also predicted that the breach of Bitcoin’s all-time high at $69,000 would trigger a cascade of short positions being covered. This would lead to increased excitement and a volatile surge in value.

Bitcoin’s Massive Price Surge

Amid widespread adoption, the price of Bitcoin surged to a new all-time high, surpassing the $69,200 mark on March 5. In the past week alone, the world’s biggest digital asset witnessed a remarkable rally of over 21%, breaking the previous record set at $68,990 on November 10, 2021.

This historic peak comes on the heels of substantial inflows from new spot Bitcoin ETFs in the United States. These ETFs have brought about passive, price-agnostic demand for Bitcoin, solidifying its position as a reliable store of value and contributing to its noteworthy price appreciation.

A research report by Bitfinex analysts project a conservative price target ranging from $100,000 to $120,000, set to be achieved by the fourth quarter of 2024. Furthermore, they anticipate the culmination of the current cycle peak sometime in 2025. These bullish forecasts reflect the sustained momentum and growing institutional interest propelling Bitcoin to new heights.

Institutional Interest in Bitcoin

These recent developments underscore the increasing institutional interest in Bitcoin, positioning it as a valuable asset class within diversified investment portfolios.

Lee suggests that institutions are increasingly inclined to invest in Bitcoin due to its distinctive nature. He noted that bitcoin has consistently outperformed other major assets. Moreover, according to Lee, its unique characteristic of being uncorrelated, with a correlation coefficient of 0.27 with traditional assets, adds to its attractiveness as an investment option.

The moves by Stanford University’s Blyth Fund signal a broader acknowledgment of Bitcoin’s potential as a store of value and a strategic investment choice.