Harvard Endowment Rotates from Bitcoin to Ethereum ETFs
Harvard University's $56.9 billion endowment has initiated a substantial new position in Ethereum ETFs, allocating $86.8 million. The move coincided with a 21% reduction in its Bitcoin ETF holdings. This rebalancing occurred as Bitcoin's price fell from its highs in late 2025.
- The endowment's move involved specific BlackRock products; it sold approximately 1.48 million shares of the iShares Bitcoin Trust (IBIT) while purchasing 3.87 million shares of the iShares Ethereum Trust (ETHA). - After the 21% reduction, the Bitcoin ETF remains Harvard's largest single publicly disclosed asset, with the remaining 5.35 million shares valued at $265.8 million as of December 31. - This rebalancing brings Harvard's total publicly disclosed crypto ETF exposure to $352.6 million, which constitutes roughly 0.6% of its total endowment assets. - Despite the sale, the endowment's Bitcoin holdings still exceed its stakes in major technology companies such as Microsoft, Alphabet, and Amazon. - This investment marks the Harvard Management Company's first publicly disclosed foray into an investment vehicle specifically tracking Ethereum. - The timing of Harvard's rotation aligns with a broader institutional trend in the fourth quarter of 2025, where overall institutional ownership of Bitcoin ETF shares dropped from 417 million to 230 million. - Some analysts view the shift as a "relative value trade," suggesting the endowment's managers may believe Ethereum is undervalued compared to Bitcoin, especially given its role in decentralized finance and smart contracts. - Beyond crypto, the endowment also adjusted its tech holdings in the same period, increasing stakes in chipmakers Broadcom and TSMC while trimming positions in Amazon, Microsoft, and Nvidia.
