Investments in cryptocurrency remain a significant part of Harvard University’s endowment portfolio, as recent filings reveal the institution has acquired around $87 million worth of Ethereum through BlackRock’s iShares Ethereum Trust (ETHA). This purchase was disclosed in regulatory filings with the Securities and Exchange Commission made public on Friday. Coinciding with this acquisition, Harvard also made the strategic decision to divest 21% of its holdings in the iShares Bitcoin Trust (IBIT), with the resulting sale amounting to approximately $72 million based on an end-of-year closing price of $49.65 per share.
These transactions come at a time when the cryptocurrency market is experiencing a prolonged downturn, raising questions about the outlook and appetite for digital assets among institutional investors. Eric Balchunas, an analyst with Bloomberg Intelligence, viewed these sales as a positive development for the crypto industry. He emphasized that having respected institutions like Harvard investing during challenging market conditions serves as a reassuring indicator for crypto issuers.
Despite the volatility, Harvard’s commitment to cryptocurrency remains robust, with the university holding more cash invested in Bitcoin ETFs than in major tech stocks, including giants such as Alphabet and Microsoft. In total, the university’s investments in crypto ETFs exceed $350 million, although this represents less than 1% of its overall endowment, which stands at $57 billion.
The cryptocurrency market has seen significant price fluctuations recently. Bitcoin has dropped approximately 47% from its all-time high in October, currently trading around $67,000. Ethereum has experienced an even steeper decline, falling about 58% to around $1,975. At the peak of Bitcoin’s price, Harvard’s stake in the cryptocurrency was nearly half a billion dollars; however, this value has been nearly halved due to both market depreciation and the university’s reduced holdings in the Bitcoin ETF.
Harvard’s foray into cryptocurrency is not an isolated incident. Several other prestigious universities, including Dartmouth, Brown, and Emory, have also publicly reported their investments in both Bitcoin and Ethereum ETFs, indicating a broader trend among elite academic institutions to explore digital asset markets as part of their financial strategies.
