This is the reason why this student-run investment fund has allocated 7% of its portfolio to Bitcoin.

Stanford Blitz Fund, a student-run investment fund at the university, bought bitcoin (BTC) for $45,000 in February after an academic staked the fortune during a meeting.

Cole Lee, a computer science major and leader at the Stanford Blockchain Club, tweeted that Blitz Fund has allocated 7% of its portfolio to Bitcoin following the acquisition.

Stanford Endowment Buys BTC

In the year Created in 1978 by an anonymous donor, the Blyth Fund manages a six-figure Stanford University endowment in honor of legendary banker Charles Blyth through investments such as stocks and bonds.

The fund supports education by giving students the opportunity to invest their money and 25% of investment returns to fund Stanford University.

During Lee's approach to the fund in February, he focused on crypto market cycles, exchange-traded fund (ETF) flows and “financial chaos and war.” The computer scientist pushed the idea to invest in the iShares Bitcoin ETF (IBIT) issued by BlackRock, the world's largest asset manager. The result of the vote is the purchase of BTC and a 7% portfolio allocation to the main digital asset.

Notably, IBIT is the largest and best-performing product of the top ten Bitcoin ETFs, with over $11 billion in assets under management and $420 million in daily revenue as of March 4.

Increasing BTC adoption

The Blyth Fund's purchase of BTC is evidence of its embrace of the relatively new digital asset. The launch of spot Bitcoin ETFs in the United States has driven BTC adoption to an unprecedented level, allowing billions of dollars of capital to flow from the traditional financial sector.

Heavy ETF volumes and inflows have boosted the BTC price to levels seen during the last bull cycle in November 2021. The crypto asset broke the $68,000 level on Tuesday morning and painted a new ATH before a major correction later in the day. Data from CoinMarketCap shows BTC traded at $66,700 at the time of writing.

Meanwhile, the ten ETFs saw their largest trading volume on March 5, registering nearly $10 billion, with IBIT alone accounting for the largest share.