Harvard Management Company, the investment arm of Harvard University, has reduced its exposure to Bitcoin while initiating its first publicly disclosed investment in an Ethereum exchange-traded fund (ETF), signaling a strategic shift in its digital asset allocation.
Bitcoin Exposure Reduced
During the fourth quarter, Harvard trimmed its position in iShares Bitcoin Trust (IBIT), managed by BlackRock.
Q3 Holdings: 6.81 million shares (~$442.8 million)
Q4 Holdings: 5.35 million shares (~$265.8 million)
Reduction: 1.48 million shares (approximately 21%)
Despite the reduction, Bitcoin remained Harvard’s largest publicly disclosed holding as of December 31, exceeding its positions in major technology companies such as Alphabet, Microsoft, and Amazon.
First Ethereum ETF Investment
At the same time, Harvard established its first position in iShares Ethereum Trust, also managed by BlackRock.
Shares acquired: 3.87 million
Total value: $86.8 million
This marks the endowment’s first publicly disclosed investment in a fund tracking Ethereum, the second-largest cryptocurrency by market capitalization.
Market Conditions and Timing
The portfolio adjustments occurred during a volatile period for digital assets:
Bitcoin reached a peak near $126,000 in October 2025 before falling to $88,429 by year-end.
Ethereum declined approximately 28% during the same timeframe.
Institutional data from 13F filings indicates that total institutional ownership of IBIT shares fell significantly in Q4, suggesting that Harvard’s move was part of a broader reduction in Bitcoin ETF exposure among large investors.
Strategic Implications
Harvard’s decision may reflect a broader portfolio rebalancing strategy rather than a loss of confidence in Bitcoin. Analysts suggest the reduction could be tied to profit-taking, volatility management, or reallocating capital toward diversification within the digital asset space.
By adding Ethereum exposure while maintaining a substantial Bitcoin position, Harvard appears to be broadening its crypto strategy rather than exiting it.
Conclusion
Harvard’s latest filings highlight an evolving institutional approach to digital assets:
A 21% reduction in Bitcoin ETF exposure
A new $86.8 million position in an Ethereum ETF
Continued significant allocation to cryptocurrency investments
The move underscores how major institutional investors are refining their crypto strategies, balancing risk management with long-term exposure to the digital asset market.
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