In a bold move signaling shifting sentiments in the cryptocurrency landscape, Harvard University’s endowment manager, the Harvard Management Company, has made noteworthy adjustments to its crypto portfolio in the fourth quarter of 2025. Recent filings with the U.S. Securities and Exchange Commission reveal that Harvard has substantially reduced its stake in BlackRock’s Bitcoin ETF while stepping into the Ethereum arena for the first time.
Specifically, Harvard cut its Bitcoin ETF position from approximately $442.9 million to around $265.8 million, translating into a substantial sale of roughly 1.5 million shares, which decreased its holdings from 6.8 million to 5.4 million shares. This recalibration represents a 21% reduction in its Bitcoin exposure and was executed amid a notable price decline in the market, with Bitcoin falling from an impressive $125,000 in October to below $90,000 by year-end.
Simultaneously, Harvard made its first foray into Ethereum by purchasing nearly 3.9 million shares of BlackRock’s iShares Ethereum Trust, valued at approximately $87 million as of December 31, 2025. This marks a significant shift in Harvard’s strategy, as it embraces Ether directly through an exchange-traded fund, illustrating a potential recalibration of risk appetite among institutional investors.
The adjustments in the portfolio came at a time when both Bitcoin and Ethereum were experiencing plunging prices. In fact, Ether itself fell from over $4,000 earlier in the quarter to under $3,000, reflecting the broader volatility in the crypto markets. Despite the trimmed Bitcoin holdings, the ETF remains Harvard’s largest disclosed cryptocurrency holding.
Strategic Insights into the Move
The reasons behind Harvard’s decision to pivot from Bitcoin to Ethereum may delve deeper than mere market sentiment. Notably, industry analysts suggest that strategic trading maneuvers could play a role. Andy Constan, founder and chief investment officer at Damped Spring Advisors, implied that the transaction might involve unwinding trades related to companies holding Bitcoin in their treasury, which often trade at a premium relative to the actual Bitcoin underlying those shares.
Such treasury companies sometimes command a premium on the market, observed when Bitcoin was on a bullish run, trading at a multiple of net asset value (mNAV). However, post-price decline, the performance of stocks related to these companies has weakened, which could have compelled investors to exit their positions and seek more stable opportunities.
Reflecting Broader Market Trends
Harvard’s adjustments are not singular; they echo a broader trend among institutional investors in light of evolving market dynamics. Data gathered from SEC 13F filings illustrate that total institutional ownership of BlackRock’s Bitcoin ETF shares plummeted from 417 million in the third quarter of 2025 to 230 million by the end of the fourth quarter.
Alongside its crypto moves, Harvard also recalibrated other facets of its investment portfolio, including bolstering its stake in Alphabet, Google’s parent, by nearly $100 million. However, it simultaneously reduced its investments in tech behemoths like Amazon, Microsoft, and Nvidia by various amounts, reflecting a strategic reallocation of resources across its diverse holdings.
As of June 30, 2025, Harvard’s endowment stood at $56.9 billion, with its combined cryptocurrency ETF holdings now accounting for a mere 0.62% of the total assets under management. The Bitcoin position alone represents approximately 0.47% of the endowment—a notable figure given the volatility and risks inherent in cryptocurrency investments.
As the cryptocurrency landscape evolves, with Harvard’s strategic shifts mirroring broader market sentiments, institutional interest in both Bitcoin and Ethereum continues to unfold, paving the way for future investment narratives in the digital asset space.
