Stanford University student-run investment fund Charles R. Blyth, which was established in 1978, has allocated a portion of its portfolio to Bitcoin.
Bitcoin adoption as an investment asset continues to grow, amid a monumental rally that has seen the cryptocurrency hit a new all-time high (ATH) recently.
Until now, Bitcoin was the favorite of cypherpunks and blockchain natives, however, the cryptocurrency is positioning itself as an important investment asset, gaining more and more ground in the financial sector.
The Charles R. Blyth Fund, established in 1978 in honor of legendary banker Charles Blyth, traditionally invests in traditional assets such as stocks and bonds. However, with the rise that Bitcoin has gained in the financial world, and the recognition and legitimacy that the approval of spot ETFs in the United States has given it, this fund has decided to broaden its horizon, integrating investment in cryptocurrency.
A change of narrative
Kole Lee, leader of the Stanford Blockchain Club, announced from his official account on X (formerly Twitter), that The Blyth Fund has bought bitcoins, allocating approximately 7% of its portfolio to BTC.
Lee shared a video on his social media showing the proposal that was submitted for the fund to invest in BlackRock's iShares Bitcoin Trust (IBIT), currently the leading Bitcoin ETF among the new ones that were approved by the SEC in the US market.
The approval of these financial instruments has been driving a change in the narrative related to Bitcoin investment, exposing the need for these financial vehicles to channel the latent demand of traditional investors for the cryptocurrency. Although some Bitcoiners criticize the centralization that exchange-traded funds represent for Bitcoin, others defend the legitimacy and recognition it has gained as an institutional investment asset.
As Lee noted, BlackRock's IBIT investment pitch was presented to an audience of skeptics. However, one of the arguments that convinced the Blyth Fund to invest in Bitcoin was that, thanks to ETFs, it was now Buying Bitcoin has become as easy as buying a stockLee highlighted how the value of gold skyrocketed after an ETF was launched that made it easier for investors to access the precious metal, emphasizing that the same could happen with Bitcoin.
On the other hand, the leader of the Blockchain Club at Stanford University emphasized that Institutions are increasingly registration to investing in Bitcoin as an asset with unique and innovative features, which is driving its demand in the market. He also spoke about the important role of Bitcoin in the global economy.
Blyth Fund with gains of more than 40%
According to Lee's post, the Blyth Fund invested in Bitcoin when the cryptocurrency was trading at $45.000 per unit. This means that at Bitcoin's current price of $65.000, the fund is seeing unrealized gains of 44%, or about $20.000 per BTC.
Bitcoin price registered a new all-time high on March 5, reaching a value of $69.170. At press time, the BTC price has corrected by 4%.
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