Harvard Reduces Bitcoin Holdings, Invests in Ethereum

Harvard reduces Bitcoin holdings, invests in Ethereum.

Harvard University’s management company sold over 20% of its shares in a Bitcoin ETF during the fourth quarter. Simultaneously, the fund made its first investment in an exchange-traded product based on Ethereum.

According to reports, as of December 31, the university held 5.35 million shares of BlackRock’s IBIT, valued at $265.8 million. Over the quarter, the entity reduced its position by 1.48 million shares.

Despite the partial sale, the Bitcoin trust remains the largest public asset in Harvard’s portfolio. This position surpasses the fund’s stakes in tech giants Alphabet, Microsoft, and Amazon.

In the fourth quarter, the university also acquired 3.87 million shares of iShares Ethereum Trust (ETHA), valued at $86.8 million. The total valuation of crypto assets under the fund’s management reached $352.6 million.

The university’s crypto strategy has drawn criticism in academic circles. Finance professors from the University of Washington and UCLA described the investments as risky, citing the “lack of intrinsic value” of the assets and declining prices.

Harvard’s actions align with a broader market trend. According to CoinShares, outflows from crypto products have continued for the fourth consecutive week. Last week, investors withdrew $173 million, with the majority of sales occurring in the US ($403 million).

Meanwhile, regional data indicates divergent sentiments: funds in Germany, Canada, and Switzerland recorded inflows. 

At the same time, demand for altcoins has increased — inflows into XRP and Solana amounted to $33.4 million and $31 million, respectively.

Earlier, from January 17 to 23, cryptocurrency investment products experienced outflows totaling $1.73 billion.