Harvard Dumps Bitcoin ETF Shares for Ethereum in Major Crypto Portfolio Shift

TLDR

• Harvard Management Company reduced its BlackRock Bitcoin ETF position from $442.9 million to $265.8 million in Q4 2025
• The endowment made its first Ether investment, buying 3.8 million shares of BlackRock’s Ethereum Trust worth $87 million
• Harvard sold roughly 1.5 million Bitcoin ETF shares, dropping from 6.8 million to 5.4 million shares
• The moves happened as Bitcoin fell from $125,000 in October to below $90,000 by year-end
• Harvard’s crypto ETF holdings represent 0.62% of its $56.9 billion total endowment

Harvard University’s endowment manager made its first investment in Ether while cutting its Bitcoin holdings by more than a fifth in the fourth quarter of 2025. The Harvard Management Company filed documents with the US Securities and Exchange Commission on Friday showing the changes.

The endowment purchased nearly 3.9 million shares of BlackRock’s iShares Ethereum Trust. The position was valued at approximately $87 million as of December 31. This marked Harvard’s first direct exposure to Ether through an exchange-traded fund.

At the same time, Harvard reduced its stake in BlackRock’s iShares Bitcoin Trust. The position dropped from $442.9 million in the third quarter to $265.8 million by the end of 2025. The company sold roughly 1.5 million shares during the period.

Harvard’s Bitcoin ETF holdings fell from 6.8 million shares to 5.4 million shares. This represented a 21% reduction in the position. Despite the cut, the Bitcoin ETF remains Harvard’s largest publicly disclosed cryptocurrency holding.

The portfolio changes occurred during a period of sharp price declines for both cryptocurrencies. Bitcoin dropped from an all-time high near $125,000 in October to just below $90,000 by the end of the quarter. Ether fell from over $4,000 to under $3,000 during the same timeframe.

Market Dynamics Behind the Trade

Industry analysts suggest the moves may reflect complex trading strategies rather than simple sentiment shifts. Andy Constan, founder and chief investment officer at Damped Spring Advisors, offered one explanation for the rebalancing.

The sale could represent the unwinding of a trade involving bitcoin treasury companies. These firms, like Strategy, sometimes trade at premiums to the value of their actual bitcoin holdings. This premium is measured using a metric called multiple of net asset value, or mNAV.

When Bitcoin’s price was rising, Strategy traded near 2.9 mNAV. This meant investors paid $2.9 for every $1 of Bitcoin the company held. Some traders held Bitcoin through ETFs while shorting these treasury company shares, betting the premium would narrow.

As Bitcoin’s price fell, so did the stock prices of these treasury companies. Strategy now trades at 1.2 mNAV. The premium compression may have prompted traders to exit positions.

Broader Institutional Trends

Data from SEC 13F filings compiled by Todd Schneider shows a wider pattern among institutions. Total institutional ownership of BlackRock’s Bitcoin ETF shares dropped from 417 million in the third quarter to 230 million in the fourth quarter.

Harvard also made changes to other holdings during the same period. The endowment increased its position in Google’s parent company Alphabet by almost $100 million. It also boosted investments in chipmakers Broadcom and TSMC, plus railroad operator Union Pacific.

The endowment reduced stakes in Amazon by about $80 million. It also trimmed positions in Microsoft and Nvidia during the quarter.

As of June 30, 2025, Harvard’s endowment totaled $56.9 billion. The combined cryptocurrency ETF holdings of $353 million represent 0.62% of total assets under management. The Bitcoin position alone accounts for roughly 0.47% of the endowment.

BlackRock’s iShares Bitcoin Trust and iShares Ethereum Trust are among the largest cryptocurrency ETFs by assets. These products allow institutional investors to gain crypto exposure without directly holding digital assets.

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