Endowments & pension funds are increasing allocations in crypto

With the market lows: pension funds & University of Michigan's endowment just increased on their crypto allocations

Endowment Funds increase allocations in Crypto

University of Michigan’s $11.9Million endowment fund who has been allocating assets to Andresen Horowitz A16z fund is now increasing it. You can read the actual document here from their Board of Regents meeting. Here’s what they said:

“Andreassen Horowitz, a Menlo Park, CA, based venture capital firm, raised a cryptonetwork fund, CNK Fund I, L.P. to invest in cryptonetwork technology companies across the spectrum of seed, venture, and growth stage opportunities. The firm has decided to create a dedicated fund for crypto investments for a few primary reasons. First, crypto has become an important area of innovation and entrepreneurship that warrants focused attention. As opportuniti~s related to cryptonetworks transition from being undefined to becoming more visible and sharply defined, ttle·need for a separate thematic fund may recede. In addition, the regulatory landscape for crypto-based investments is potentially more cumbersome than is the case with the sort of traditional IT investing that otherwise characterizes AH's activities. Finally, crypto is currently regarded as a distinct type of technology by entrepreneurs, funding sources, and developers. By creating a separate fund, AH hopes to be better positioned within this community than would be the case by continuing to invest through its generalist IT funds.”

This is a larger signal of larger acceptance of adopting new technologies and opportunities as a foundation of the future.

Pension funds are also allocating:

Emerging managers and newer funds are also getting involved in opportunities with pension fund allocations. A still very uncomfortable investment with the markets not helping, two Virginia pension funds recently invested in Morgan Creeks’s $40 Million dollar digital asset fund. According to Cambridge associates referenced from AMB crypto:

“Despite the challenges, we believe that it is worthwhile for investors to begin exploring this area today with an eye toward the long term,’’ said analysts at Boston-based Cambridge in a research note published Monday. “Though these investments entail a high degree of risk, some may very well upend the digital world.’’