by Marvin Dumont
They’re seeing the light.
Endowments are pouring capital and therefore buoying the cryptocurrency market, as reflected in 32% increase in market capitalization in 2019. Is crypto winter permanently over?
Endowments are college-affiliated investment funds that have tens of billions of dollars seeking an ROI. A BitGo survey reached out to 150 endowments. It found that:
- 94% of endowments have taken part in a crypto-related investment in the past 12 months
- 94% believe the sector’s allocation to crypto investments will either increase or stay the same in 2019
- Only 7% believe their allocation will drop during 2019
Apollo all-in-one privacy currency, along with mainstream cryptos, should benefit from asset managers’ growing appetite for the new asset class. Since January 1, APL’s market cap has grown 200% from $10 million to $30 million.
Big investors, adoption, and more use-cases in emerging markets are key drivers to future growth.
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“The multi-billion dollar US university funds, valued according to their donations and financial assets, collectively amount to a huge institutional
asset pool — where returns and strategies are heavily [scrutinized], and chief investment officers and decision makers can make a real name for themselves,” according to same report’s authors.
This month, Harvard University’s endowment fund made headlines by investing $11.5 million in a new crypto. It’s a significant move that will likely be copied by other endowments.
In October 2018, it was reported that Yale’s chief investment officer had invested in two funds dedicated to cryptocurrencies. In March 2019, the $11.9 billion University of Michigan endowment fund invested $3 million in crypto-network fund CNK Fund I.
Custodian services are important to wealth managers.
“Endowments are used to using traditional custodians, often with decades
of experience in safeguarding. In the early stages of cryptocurrency’s breakout in the capital markets, there were major concerns about the lack of safeguarding and custody, which many providers are now looking to address. For many institutional investors however, the emergence of custody offerings proven to have consistently high safeguarding standards will be essential.”
Recent Apollo Updates:
Apollo (APL) all-in-one privacy currency combines features of mainstream cryptocurrencies in a truly private and unregulatable platform. With two-second block speed, APL is one of the fastest cryptos on Earth. The privacy platform lets “Apollonauts” transact and send data anonymously via Encrypted Messaging, Private Ledger, Decentralized Exchange, IP Masking 2.0 and Coin Mixing. Learn more at www.apollocurrency.com