How Did Harvard Adjust Its Crypto Exposure?
Harvard Management Company reduced its holdings in BlackRock’s iShares Bitcoin Trust during the fourth quarter while opening a new $86.8 million position in the iShares Ethereum Trust, according to a 13F filing with the U.S. Securities and Exchange Commission.
The endowment reported holding 5.35 million shares of the iShares Bitcoin Trust as of Dec. 31, valued at $265.8 million. That represents a reduction of 1.48 million shares from the prior quarter, when Harvard disclosed 6.81 million shares worth $442.8 million.
At the same time, Harvard acquired 3.87 million shares of the iShares Ethereum Trust, establishing its first publicly disclosed position in an exchange-traded fund tied to ether. The new stake was valued at $86.8 million at quarter-end.
Combined, the two positions gave the endowment $352.6 million in exposure to the two largest digital assets by market capitalization.
Investor Takeaway
Where Does Bitcoin Rank in the Portfolio?
Despite the reduction, bitcoin remained Harvard’s largest publicly disclosed equity holding as of Dec. 31. The $265.8 million position exceeded the endowment’s reported stakes in Alphabet, Microsoft, and Amazon.
The adjustment came during a volatile quarter for crypto markets. Bitcoin reached roughly $126,000 in October 2025 before declining to $88,429 by year-end. Ether fell about 28% over the same period. As of this week, bitcoin and ether trade near $68,600 and $1,900, respectively.
The decline in prices partly explains the drop in reported value quarter over quarter. However, the filing confirms that Harvard also actively reduced its share count, not just its mark-to-market exposure.
Why Add Ether Now?
The addition of the iShares Ethereum Trust gives Harvard direct exposure to the second-largest cryptocurrency through a regulated ETF wrapper. Unlike its prior digital asset exposure, which focused solely on bitcoin, the endowment now holds positions tied to both major tokens.
The move introduces a different risk profile. Ether’s performance tends to be more volatile than bitcoin and is often tied to activity in decentralized finance and tokenization markets. Adding ether suggests the investment office sees diversification value within the crypto segment itself.
Investor Takeaway
What Are Critics Saying?
Harvard’s crypto exposure has drawn scrutiny from academic observers. Andrew F. Siegel, emeritus professor of finance at the University of Washington, described the bitcoin investment as “risky” and noted it was down 22.8% year-to-date. He added that the risk of bitcoin is “partly due to its lack of intrinsic value.”
Avanidhar Subrahmanyam, a professor of finance at UCLA, wrote that adding ether deepens his reservations about the endowment’s digital asset allocation. He characterized cryptocurrency as an unproven asset class with unclear valuation methodology and said his prior skepticism toward Harvard’s bitcoin investment had been reinforced by subsequent performance.
The contrasting views reflect a broader divide in institutional circles. While some asset managers treat digital assets as a long-term allocation with asymmetric upside, others view them as speculative instruments without clear cash-flow anchors.
What Comes Next?
Harvard’s quarterly filing provides a snapshot rather than a long-term roadmap. The fourth-quarter changes show active management within the crypto sleeve, including both trimming and expansion.
Future filings will indicate whether the ether allocation grows, remains stable, or is treated tactically. For now, the endowment retains one of the largest publicly disclosed institutional ETF positions in bitcoin while testing broader exposure to the crypto market through ether.
