Harvard Cuts Bitcoin ETF Stake, Adds First Ethereum ETF Position
Harvard Management Company trimmed its exposure to BlackRock’s iShares Bitcoin Trust (IBIT) by over 20% in Q4 2025 while opening a new position in BlackRock’s iShares Ethereum Trust (IETH), according to its 13F filing. As of Dec. 31, 2025 the endowment held about 5.35 million IBIT shares worth $265.8 million (down from 6.81 million shares, $442.8 million the prior quarter) and roughly 3.87 million IETH shares worth $86.8 million, for combined public crypto ETF holdings of $352.6 million. The moves took place amid significant crypto volatility: Bitcoin slid from an October 2025 peak near $126,000 to about $88,429 by year-end and traded lower more recently, while Ethereum fell roughly 28% in Q4 and was trading near $1,900. Despite trimming BTC ETF exposure, Bitcoin remained Harvard’s largest publicly disclosed equity-like holding, surpassing positions in big-tech companies. The filing marks Harvard’s first public allocation to an Ethereum ETF and signals portfolio rebalancing rather than a full exit from crypto. Market commentary included skepticism from UCLA finance professor Avanidhar Subrahmanyam, who criticized increased ETH exposure and reiterated doubts about cryptocurrencies as an unproven asset class. Traders should note the reallocation: reduced IBIT holdings may modestly reduce institutional BTC ETF bid pressure, while a new IETH position could increase institutional flows into Ethereum products; both moves underscore active portfolio management amid high volatility.
Neutral
The reallocation is mixed for on-chain price pressure. Harvard’s >20% reduction in its IBIT position removes some institutional ETF demand for Bitcoin, which could be marginally bearish short-term if other institutions follow suit. However, the size—about $265.8 million in IBIT—and the fact Harvard still holds a large BTC ETF position limits immediate downward pressure. Simultaneously, Harvard’s first disclosed IETH stake (about $86.8 million) introduces new institutional demand for an Ethereum ETF, which is mildly bullish for ETH ETF flows. Given these offsetting effects and that the moves are framed as portfolio rebalancing rather than liquidation, the net price impact on BTC and ETH is likely neutral to mixed: potential slight short-term weakness for BTC but some support from continued institutional allocation; modest positive for ETH from new institutional interest. Over the long term, a single endowment’s reallocation is unlikely to decisively move market trends absent broader institutional shifts.