In a remarkable financial maneuver, Harvard University has significantly bolstered its investment in Bitcoin, expanding its holdings by 257% in the third quarter of this year. This strategic decision has positioned the iShares Bitcoin Trust as Harvard’s largest disclosed investment, with 6.8 million shares valued at approximately $442.8 million as of September 30. The recent 13F filing reveals that Harvard’s stake jumped from 1.9 million shares reported in June, showcasing the university’s growing commitment to cryptocurrency. Alongside this Bitcoin expansion, Harvard also increased its gold ETF holdings by 99%, bringing its total to 661,391 shares valued at $235 million.
Eric Balchunas, a notable Bloomberg ETF analyst, commented on the significance of this investment, indicating that it represents a critical institutional endorsement within elite university endowments. Balchunas described the rarity of top-tier endowments engaging in ETF purchases, especially one as storied as Harvard, emphasizing that this move serves as a strong validation for Bitcoin ETFs.
Harvard’s dramatic pivot towards Bitcoin stands in stark contrast to previous skepticism expressed by some faculty members regarding the cryptocurrency’s future. Kenneth Rogoff, a prominent Harvard professor and former IMF chief economist, famously predicted in 2018 that Bitcoin was more likely to be worth $100 rather than reaching $100,000 within a decade. Rogoff had argued that regulatory challenges would dampen Bitcoin’s value and limit its practical use cases. Recently, he revisited his earlier statements, acknowledging that he had underestimated both Bitcoin’s role in the global economy and the regulatory complexities that have since emerged.
Balchunas remarked on the irony of the situation, highlighting how Harvard’s substantial investment must feel validating to advocates of Bitcoin. The $443 million allocation is just about 0.75% of Harvard’s overall endowment, estimated at $57 billion. However, analysts predict that this figure could increase, suggesting it could rise to 1% and ultimately reach 5% as more institutions follow suit.
Harvard’s move mirrors a broader trend among institutional investors increasingly venturing into cryptocurrency through regulated frameworks. For instance, the State of Michigan Retirement System has tripled its Bitcoin ETF stakes to 300,000 shares, valued at $11.4 million, while also maintaining a significant position in Ethereum. Similarly, the State of Wisconsin Investment Board holds over 6 million shares in the iShares Bitcoin Trust, valued at around $387.3 million.
Other academic institutions are also getting in on the action. Emory University disclosed a $15 million investment in the Grayscale Bitcoin Mini Trust in 2024, marking a pivotal move as one of the first major US endowments to reveal cryptocurrency exposure. Meanwhile, the University of Austin has established a dedicated $5 million Bitcoin fund within its endowment, making it the first US university to initiate such a focused investment strategy.
Despite increased adoption, some institutional players approach cryptocurrency with caution. Cornell University professor Eswar Prasad described Bitcoin as a “purely speculative financial asset,” expressing concerns about its volatility compared to traditional investments. Brian Neale from the University of Nebraska Foundation echoed this sentiment, stating that he does not view cryptocurrency as a viable asset class for institutional investment due to limited adoption among traditional allocators.
As the landscape of institutional investment continues to evolve, the implications of Harvard’s Bitcoin endorsement may signal a significant shift, not only for the university but for the broader acceptance of cryptocurrency in traditional financial systems.
