The recent plunge in Bitcoin and other crypto assets has forced institutional investors to reassess exposure and liquidity, with some endowments that bought into crypto-linked ETFs seeing sharp mark-to-market losses and redemptions. The selloff has highlighted how newer asset classes can quickly transmit volatility to traditionally conservative institutional portfolios, potentially affecting spending plans and research funding. Observers said the episode underlines the governance challenge for university finance offices and endowment managers: balancing innovation in alternative allocations against liquidity stress and donor expectations. For campuses that have less diversified treasury operations, the market moves could prompt tighter investment committees and a reevaluation of risk limits for speculative holdings.