A recent report by Bloomberg has suggested that the legendary investor David F. Swansen has just overseen an investment by Yale University in a new cryptocurrency-focused fund, dubbed ”Paradigm”.
The ”Paradigm” fund has supposedly raised a respectable $400 million, and its launch has been spearheaded by the Coinbase co-founder Fred Ehrsam, ex-Pantera Capital employee Charles Noyes and a former partner of Sequoia Capital, Matt Huang.
Furthermore, Sequoia Capital is reportedly invested in the fund, and Paradigm intends to invest in ”early-stage projects focused on cryptocurrencies, new blockchains and exchanges,” according to a comment by Noyes in June.
Swansen has been the Chief Investment Officer at Yale University for more than thirty years, growing the Ivy League school’s now-massive endowment fund from a comparatively meager $1 billion to $29.4 billion, which has earned him the nickname ”Yale’s Warren Buffett”.
Furthermore, Swansen has often been referred to as a pioneer in institutional investing. His investment model is said to favor ”a longer time horizon and committing capital to more illiquid assets”, according to the Bloomberg piece.
This comes as an investment in Paradigm would make Yale one of few sizable institutions that have actually begun to invest in the cryptocurrency market – which, coupled by the explanation that Swansen favors long-term investments, suggests that he sees the market growing substantially in coming years.
More specifically, a February survey by the consulting firm NEPC concluded that 96% of foundations and endowments do not invest in virtual currencies.
Bloomberg reports that the exact size of the Yale endowment’s investment in Paradigm is currently unknown, with Paradigm refusing to comment on the issue. Yale University has similarly declined to comment on the investment.
However, this story becomes even more interesting on the heels of a CNBC report, which suggests that Swensen has also invested in a second cryptocurrency fund – namely Andreessen Horowitz’s ”a16z crypto” fund.
Horowitz’s fund closed in June and attracted investments of $300 million. The sources who revealed that Swansen’s team had also invested in the fund, in addition to Paradigm, stated that the investment was confidential and did not want to be named.
If the reports of these two investments are indeed true, they would symbolize a significant vote of confidence in the assets class as a whole. This would come off the heels of several industry analysts claiming that the cryptocurrency market is in the midst of ”bottoming out”.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.