Harvard Management Company which is the world’s largest academic endowment has come forth to invest in cryptocurrencies through a token sale, according to a tweet by Anthony Pompliano, founder of Morgan Creek Digital.
This fact transpired when Blockstack, a blockchain start-up which is planning to make $50 million in token sales in its regulatory filing to the US Securities and Exchange Commission (SEC) stated that Harvard and another investor have already bought 95.8 million of its tokens.
Initially, it was believed that the crypto world would see a lot of institutional investments. However, even until the last quarter of 2017, when the value of Bitcoin riding on a bullish wave rose to $20,000, it was not the case. The crypto market had hardly seen many institutional investments. This was mainly because of the lack of availability of adequate financial tools for institutional investors.
However, it was only during 2018 that investment firms like Grayscale or Bitcoin Investment Trust lead the way for institutional investors. Now, this mode is getting significant leverage, and several companies seem very optimistic about it.
Harvard Blockstack Deal
Harvard followed Yale University in terms of academic institutions investing in cryptocurrencies.
In fact, Charlie Saravia, a managing director at Harvard Management Company is a representative on the advisory committee Blockstacks had formed for its token sale. This too was revealed in the regulatory filing. Although, according to Bloomberg, neither Harvard Management nor Blockstacks has commented on this deal.
Transparency and Investments
Transparency has been a significant reason why institutional investors have shunned investment in this asset class according to some observers. Therefore, it can be stated that being the first fully regulated token sale under SEC norms, Stacks tokens seem the most transparent. The token sale was conducted under the regulation A+ framework of SEC, which allows minimal disclosure. It can be clearly stated then that there is a link between regulations and institutional investment into the crypto market.