Harvard Cuts Bitcoin ETF Holdings, Boosts Ether Investments

Harvard Management Company Adjusts Crypto ETF Portfolio

The Harvard Management Company, responsible for overseeing Harvard University’s substantial endowment fund, has made notable changes to its cryptocurrency investments. Specifically, it has decreased its holdings in BlackRock’s spot Bitcoin exchange-traded fund while initiating a fresh investment in the firm’s Ether exchange-traded fund.

According to a recent filing submitted to the United States Securities and Exchange Commission on a Friday, the endowment disclosed that its position in the BlackRock iShares Bitcoin Trust ETF had been trimmed down to $265.8 million as of the end of December 31. This represents a significant drop from the $442.9 million value recorded during the third quarter of 2025. These adjustments translated into the sale of over 1 million shares, bringing the total share count to 5.4 million shares in the fourth quarter, compared to 6.8 million shares held previously.

Beyond this 21% reduction in its Bitcoin-related holdings, the Harvard Management Company also ventured into new territory by establishing a position with direct exposure to Ether. The SEC documentation reveals that the endowment acquired more than 3.8 million shares of BlackRock’s iShares Ethereum Trust, with the investment valued at approximately $87 million at the close of December 31.

Market Volatility Influences Strategic Shifts

These portfolio decisions by Harvard’s managers unfolded against a backdrop of considerable price fluctuations in the cryptocurrency markets. Bitcoin’s value experienced a sharp decline, falling below $90,000 by early January 2026, down from peaks exceeding $120,000 at the start of July 2025. Similarly, Ether’s price retreated to under $3,000 during this timeframe, having previously traded above $4,000.

As detailed in Harvard’s financial report dated June 30, 2025, the university’s endowment was valued at $56.9 billion at that point. This means that the investments in BlackRock’s cryptocurrency ETFs constituted about 0.62% of the overall assets under management. In parallel with these crypto adjustments, the management company expanded its stake in Alphabet, the parent entity of Google, by nearly $100 million. Conversely, it scaled back its investment in Amazon by roughly $80 million during the fourth quarter of 2025.

Broader Trends in Institutional Crypto Adoption

Harvard’s strategic maneuvers in the crypto space occur amid growing interest from institutional investors in digital assets. The moves highlight a nuanced approach to portfolio diversification, balancing exposure across leading cryptocurrencies like Bitcoin and Ether. This shift may reflect a reassessment of risk and opportunity in light of recent market dynamics, where volatility has tested the resilience of even the most established digital currencies.

The decision to reduce Bitcoin ETF shares while entering the Ether market could signal confidence in Ethereum’s ecosystem and its potential for long-term growth. Ether, as the native token of the Ethereum network, powers a vast array of decentralized applications, smart contracts, and layer-2 solutions, which continue to drive innovation in blockchain technology. By allocating funds to BlackRock’s Ether ETF, Harvard positions itself to benefit from these developments without the complexities of direct custody or trading on exchanges.

Meanwhile, the trimming of Bitcoin holdings does not indicate a complete withdrawal from the asset class. Retaining over 5 million shares underscores a continued belief in Bitcoin’s role as a store of value and digital gold, albeit with moderated exposure amid price corrections. This balanced strategy exemplifies how sophisticated institutional players navigate the crypto markets, prioritizing capital preservation alongside growth potential.

Context of University Endowments and AI Investments

Interestingly, Harvard’s actions align with broader trends among university endowments exploring alternative assets. For instance, in November, the AI-driven hedge fund Numerai announced it had secured $30 million in funding from leading university endowments. Described as some of the most astute and patient capital allocators globally, these investors helped propel Numerai’s native token price upward by over 40% following the disclosure. Although specific institutions were not named, the event underscores the increasing intersection of traditional finance, endowments, and cutting-edge technologies like artificial intelligence in investment strategies.

Harvard’s endowment, with its massive $56.9 billion corpus, plays a pivotal role in funding the university’s operations, research, and financial aid programs. Managed prudently, such portfolios aim to generate sustainable returns over decades, often incorporating a mix of equities, bonds, real estate, private equity, and now, selectively, cryptocurrencies. The inclusion of crypto ETFs via established providers like BlackRock provides regulatory clarity and ease of access, mitigating some of the operational risks associated with direct crypto ownership.

Looking ahead, these adjustments may foreshadow further evolution in how elite endowments engage with digital assets. As regulatory frameworks mature and market infrastructure improves, institutions could deepen their involvement, potentially driving greater legitimacy and capital inflows into the sector. Harvard’s measured approach—cutting back on one asset while pivoting to another—demonstrates a data-driven, risk-aware methodology that other investors may emulate in the volatile world of cryptocurrencies.