Harvard Management Company scaled back its Bitcoin ETF holdings in the fourth quarter while initiating its first investment in an Ethereum-focused fund.
According to a recent filing with the U.S. SEC, the university endowment had $352.6 million in combined exposure to the two largest cryptocurrencies as of December 31.
Key Points
- Harvard reduced its Bitcoin ETF stake by 1.48 million shares, a 21% decline from last quarter, yet it remains the largest holding.
- The endowment initiated its first Ethereum ETF investment, acquiring 3.87 million shares valued at $86.8 million at the end of December.
- Combined Bitcoin and Ethereum ETF holdings reached $352.6 million.
- Academic experts questioned the strategy, highlighting high risk and a lack of intrinsic value.
Bitcoin Stake Trimmed in Fourth Quarter
Specifically, the Form 13F, submitted to the SEC on Friday, details the portfolio adjustments. As of December 31, Harvard held 5.35 million shares of BlackRock’s iShares Bitcoin Trust (IBIT), valued at $265.8 million. During the quarter, the fund reduced its stake by 1.48 million shares.
By comparison, in the previous quarter, Harvard reported owning 6.81 million IBIT shares, worth $442.8 million. The latest figures reflect a 21% decline in share count.
However, despite trimming the position, Bitcoin remained the endowment’s largest publicly disclosed equity holding. Notably, the $265.8 million allocation exceeded its reported stakes in Alphabet, Amazon, and Microsoft, based on the same SEC filing.
Harvard Initiates First Ethereum ETF Position
While reducing its Bitcoin exposure, Harvard simultaneously expanded its footprint in digital assets. The filing shows the endowment initiated a new position in BlackRock’s iShares Ethereum Trust (ETHA). Specifically, it purchased 3.87 million shares, valued at $86.8 million at quarter-end.
This move marks Harvard’s first publicly disclosed investment in an Ethereum-linked ETF. When combined with its Bitcoin holdings, the total crypto ETF exposure reached $352.6 million as of December 31.
Market Turbulence Shaped the Quarter
These portfolio changes came during a volatile stretch for cryptocurrency markets. Bitcoin dipped from roughly $126,000 in October 2025 to $88,429 by year-end. Over the same period, Ethereum declined about 28%.
At the time of publication, Bitcoin was trading near $69,369, while Ethereum hovered around $2,000, according to CoinGecko data. The shifting market backdrop provides context for the endowment’s rebalancing decisions.
Academic Experts Question the Strategy
Beyond market performance, Harvard’s crypto allocations have drawn scrutiny within academic circles. The Harvard Crimson reported Monday that finance scholars raised concerns about the strategy.
Andrew F. Siegel, emeritus professor of finance at the University of Washington, described the Bitcoin allocation as risky. He noted the asset was down 22.8% year to date and cited its lack of intrinsic value as a concern.
Similarly, Avanidhar Subrahmanyam, a finance professor at UCLA, said the addition of Ethereum heightens his reservations. In his view, cryptocurrency remains an unproven asset class with unclear valuation frameworks. Moreover, he added that recent performance reinforced his earlier skepticism about Harvard’s Bitcoin exposure.
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