Harvard Cuts Bitcoin ETF Stake by 21%, Adds $87 Million Position in Ethereum Fund

Harvard University’s endowment manager reduced its exposure to a major Bitcoin exchange-traded fund in the fourth quarter while initiating a sizable new position in an Ethereum-linked product, according to a recent regulatory filing.

Harvard Management Company, which oversees the Ivy League institution’s investment portfolio, trimmed its holdings in the iShares Bitcoin Trust by roughly 21% during the quarter ended Dec. 31. At the same time, the firm disclosed a new stake worth approximately $86.8 million in the iShares Ethereum Trust.

Bitcoin Remains the Largest Position

Despite the reduction, Bitcoin continues to represent Harvard’s largest publicly reported equity holding. The filing shows the endowment held 5.35 million shares of the Bitcoin ETF at the close of the quarter, valued at $265.8 million. That marks a decrease from the prior quarter, when it reported 6.81 million shares worth $442.8 million.

The adjustment occurred during a turbulent period for digital asset markets. Bitcoin climbed to roughly $126,000 in October 2025 before retreating sharply to about $88,000 by year-end. Prices have since moderated further, with Bitcoin trading near $68,600 this week.

Even after the reduction, Harvard’s Bitcoin allocation exceeded its disclosed stakes in major technology companies, highlighting the continued significance of digital assets within the endowment’s portfolio.

First Public Ether Allocation

In parallel, Harvard opened its first reported position tied to Ethereum, acquiring 3.87 million shares of the Ethereum ETF. The new position, valued at $86.8 million as of Dec. 31, signals a broadening of the endowment’s digital asset exposure beyond Bitcoin.

Ether declined approximately 28% during the fourth quarter, reflecting broader volatility across crypto markets. It is currently trading near $1,900.

Academic Scrutiny Grows

Harvard’s crypto strategy has attracted criticism from some academics. Finance scholars have questioned both the volatility of digital assets and the challenges involved in valuing them under traditional financial frameworks.

Some critics argue that Bitcoin’s lack of intrinsic cash flows makes it inherently speculative, while others contend that expanding exposure to Ethereum heightens the portfolio’s risk profile. Still, supporters of digital assets maintain that institutional participation reflects growing acceptance of cryptocurrencies as part of diversified investment strategies.

Strategic Rebalancing or Tactical Shift?

The fourth-quarter changes may reflect portfolio rebalancing amid price swings rather than a wholesale shift in strategy. By trimming its Bitcoin exposure while adding Ethereum, Harvard appears to be adjusting its crypto allocation without exiting the space.

With a combined $352.6 million invested across the two largest cryptocurrencies through regulated ETFs, the university remains one of the most prominent institutional participants in public digital asset markets.