The University of Austin (UATX) and Unchained, a prominent Bitcoin financial services firm, have joined forces to create a unique long-term Bitcoin endowment fund.
This initiative aims to raise $5 million, all of which will be invested in bitcoin (BTC) and held for a minimum of five years. The collaboration is set to pave the way for other academic institutions to explore innovative financial strategies involving digital assets.
Announced on May 31, the partnership between Unchained and UATX marks the establishment of the first long-term endowment fund held entirely in bitcoin.
The initiative is designed not only to integrate bitcoin into the university’s financial framework but also to explore alternative financial models that could potentially offer greater resilience compared to traditional endowment strategies.
The announcement reads:
“This initiative reflects the core missions of both Unchained and UATX, emphasizing sound money principles, resistance to censorship, and challenging the status quo.”
Joseph Kelly, CEO and co-founder of Unchained, has been a driving force behind this initiative. In a statement on X, Kelly expressed his excitement about the collaboration.
“The world needs more great founders, and we are excited to bring together our communities to build something new,” he said. Kelly’s personal commitment to the project is evident in his donation of 2 BTC, valued at approximately $137,000, to kickstart the fund.
He added:
“I’ve been very passionate about what UATX is building in Austin, I’ve seen the values the organization places on free speech and on building a modern academic institution that’s integrated with the marketplace.”
One of the key components of this partnership is the secure management of the Bitcoin endowment.
Unchained will provide its collaborative custody vault, a robust security solution designed to protect the university’s bitcoin holdings from malicious actors. This custody model ensures that there is no single point of failure, enhancing the security and integrity of the endowment.
This sentiment is echoed by Thomas Hogan, the Associate Professor joining the Center for Economics, Politics, and History at UATX.
“University endowments are about serving students, and Bitcoin provides a unique opportunity for advancing UATX’s commitment to cultivating future generations of leaders and innovators,” Hogan said.
The collaboration between Unchained and UATX is not just about financial investment; it’s also about fostering a deeper connection between the academic and Bitcoin communities.
To achieve this, the partnership includes a series of joint marketing campaigns, events, guest lectures, and debates. These activities are designed to educate the public about the benefits of Bitcoin and its potential to revolutionize both finance and education.
The initiative aligns with the core missions of both organizations. For UATX, it underscores the university’s dedication to free speech, market integration, and challenging the status quo. For Unchained, it reflects the company’s commitment to sound money principles and resistance to censorship.
“Both UATX and the Bitcoin community are building institutions for the future at a time when their respective worlds of higher education and financial services are captured by entrenched powers which limit freedoms through censorship,” Kelly stated.
By integrating bitcoin into its endowment, UATX is setting a precedent for other academic institutions.
The university hopes to demonstrate that alternative financial models can offer more resilient and innovative ways to manage endowment funds. This move comes at a time when academic interest in Bitcoin is on the rise.
In recent years, several prestigious universities have ventured into the world of digital assets.
For instance, Stanford University’s Blyth Fund increased its portfolio exposure to 7% in bitcoin via BlackRock’s spot Bitcoin ETF earlier this year. Similarly, Ivy League institutions like Harvard, Yale, and the Massachusetts Institute of Technology (MIT) have explored Bitcoin investments as early as 2018.
The interest in Bitcoin is not limited to universities. Major hedge funds are also increasingly investing in Bitcoin ETFs. Out of the top 25 hedge funds in the United States, 13 have entered the market by investing in spot Bitcoin ETFs during the first quarter of this year.
Notable examples include Point72, which held $77.5 million worth of Fidelity’s Wise Origin Bitcoin Fund (FBTC) at the end of the first quarter, and Millennium Management, the largest institutional holder with approximately $2 billion invested.
These investments by hedge funds and academic institutions alike indicate a broader acceptance of Bitcoin as a viable financial asset.
They also highlight the potential for Bitcoin to serve as a long-term investment vehicle, capable of offering significant returns and hedging against traditional financial risks.
The initiative’s success will depend on its ability to engage the community, secure the endowment funds, and demonstrate the resilience and benefits of holding bitcoin as part of a university’s financial strategy.
If successful, it could inspire other academic institutions to consider similar approaches, ultimately contributing to a broader acceptance and understanding of the digital asset in the academic world.
