Harvard Management Company (HMC) — the investment arm managing Harvard University’s $56.9 billion endowment — reduced its Bitcoin ETF holdings by roughly 21 % in the fourth quarter of 2025 while simultaneously establishing a new $87 million position in an Ethereum (ETH) ETF, according to recent U.S. Securities and Exchange Commission (SEC) filings.
The cryptocurrency rebalance reflects a broader strategic adjustment in the endowment’s digital-asset portfolio amid heightened volatility in crypto markets and shifting institutional views on diversified digital exposure.
Portfolio Changes Revealed in SEC Filing
Harvard’s latest 13F filing shows that as of Dec. 31, 2025, the endowment held approximately 5.35 million shares of the BlackRock iShares Bitcoin Trust (IBIT), valued at about $265.8 million, down from roughly 6.81 million shares — worth about $442.9 million — in the previous quarter. This represents a 21 % reduction in Bitcoin ETF exposure.
At the same time, HMC initiated a new position in the BlackRock iShares Ethereum Trust (ETHA) for the first time, purchasing approximately 3.87 million shares with an estimated market value of $86.8 million by year-end — marking Harvard’s first publicly disclosed exposure to an Ethereum-linked ETF.
The combined crypto-linked ETF exposure stood at about $352.6 million at quarter-end, a figure that remains roughly 1 % of the endowment’s overall $56.9 billion portfolio.
Strategic Rebalancing Amid Market Volatility
The portfolio reshuffle took place during a turbulent period for major cryptocurrencies. Bitcoin’s price peaked near $126,000 in October 2025 before falling to around $88,429 by Dec. 31, while Ethereum also registered a steep decline of about 28 % over the same period.
Despite trimming its Bitcoin exposure, Harvard retained Bitcoin as one of its largest publicly disclosed ETF holdings, with the IBIT position still greater than its stakes in some major equity names such as Alphabet, Microsoft, and Amazon.
Institutional Context and Implications
Harvard’s shift highlights a growing trend among institutional investors to both rebalance crypto exposure and diversify within digital-asset classes using regulated investment vehicles. Spot Bitcoin and Ethereum ETFs — which provide exposure to digital tokens without the challenges of direct custody — have become increasingly popular among institutional allocators since their regulatory approvals.
Analysts note that Harvard’s move to add an Ethereum ETF position signals confidence in broader crypto markets beyond Bitcoin, potentially reflecting expectations for Ethereum’s expanding role in decentralized finance (DeFi), smart contracts, and tokenization.
However, some industry observers caution that reallocations during volatile periods can be influenced by short-term price movements as well as long-term strategic theses, emphasizing that risk management and portfolio diversification remain priorities for large endowments.
Looking Ahead
Harvard’s crypto ETF adjustments may influence institutional investor behavior as crypto markets continue to evolve. The balance between digital-asset diversification and risk-averse repositioning could shape future endowment and pension fund allocations, especially as regulatory frameworks and ETF products continue to expand.
