Definition ∞ An endowment fund is a financial asset pool, typically established by non-profit institutions, that generates investment income to support the organization’s mission over an extended period. The principal amount is generally kept intact, with only the investment returns utilized for expenditures. In the context of digital assets, such funds might hold cryptocurrencies or other digital assets as part of their investment portfolio. These funds provide sustained financial backing for long-term objectives.
Context ∞ The state of endowment funds in the digital asset domain involves a growing interest from traditional institutions in allocating portions of their endowments to cryptocurrencies. Key discussions concern the regulatory hurdles and risk management strategies associated with holding volatile digital assets. A critical future development involves the increasing acceptance and establishment of best practices for digital asset investment within institutional endowment management.