Harvard Cuts Bitcoin ETF Holdings, Makes First Ether ETF Bet

Key Insights:

• Harvard cuts Bitcoin holdings by more than 20%, holds huge stake in BTC.
• Harvard enters Ethereum ETF with an $86.8 million investment, signaling a portfolio shift.
• Volatility of Bitcoin and the academic study raise doubts about the long-term viability.

Harvard Management Company reduced its exposure to Bitcoin ETFs in Q4 2025. It cut its holdings by more than 20%. The firm actively adjusted its cryptocurrency portfolio. It shifted its strategy to manage risk and rebalance investments.

At the same time, Harvard Management Company shifted its digital asset strategy. It made its first-ever investment in an Ether ETF. The firm actively diversified beyond Bitcoin. It positioned itself to capture growth in Ethereum exposure.

Harvard Cuts Bitcoin Holdings Amid Market Volatility and Risk Strategy

As of December 31, 2025, HMC held 5.35 million shares of BlackRock’s iShares Bitcoin Trust (IBIT). It is valued at roughly $265.8 million. This represented a decrease of 1.48 million shares compared to the previous quarter. At that time, HMC had 6.81 million shares valued at $442.8 million.

Despite the reduction, Harvard Management Company still held Bitcoin as its largest publicly disclosed asset. It outweighed investments in Alphabet, Microsoft, and Amazon. The firm maintained Bitcoin as a dominant position. Its portfolio showed crypto’s prominence over major tech stocks.

This move is being made in a heated time for Bitcoin. In October 2025, Bitcoin hit a high of $126,000, but by the end of the year, it fell to $88,429, and now this week it is trading around $68,000.

Harvard’s decision to cut Bitcoin exposure looks prudent. The firm acted cautiously amid ongoing volatility. It responded to sharp price adjustments in the market. This move reflects a careful risk management approach.

First Investment in Ether ETF: A Shift in Strategy

As a contrast to its approach to Bitcoin, HMC has launched a new position in the iShares Ethereum Trust (IETHA). They have invested $86.8million in 3.87million shares. It is the first publicly traded fund by Harvard in an Ethereum ETF, which has diversified its digital asset portfolio.

Ethereum is the second-largest cryptocurrency by market capitalization. It has consistently trailed behind Bitcoin in adoption. Its performance has also lagged compared to Bitcoin. The market still views Bitcoin as the dominant digital asset. The asset saw a 28% decline in Q4 2025.

Harvard Management Company’s investment in Ethereum marks a strategic shift. It exposes the endowment to a new digital asset class. The move may strengthen diversification in its portfolio.

It also signals broader confidence in Ethereum’s long-term potential. Meanwhile, Ethereum’s price currently stands at around $1,970.

Scholars Question Harvard’s Crypto Strategy Amid Volatility Concerns

However, Harvard’s investments in crypto have raised some doubts from academic observers. Andrew F. Siegel, emeritus professor of finance at the University of Washington, criticized Harvard’s holdings in Bitcoin as “risky.”

He said Bitcoin’s lack of intrinsic value makes it the most volatile cryptocurrency. Bitcoin has already dropped 22.8% year-to-date.

UCLA finance professor Avanidhar Subrahmanyam also expressed some doubts, especially over the inclusion of Ether in the portfolio. He claimed that cryptocurrencies are not yet proven and do not have definite valuation techniques.

Subrahmanyam’s criticism reflects his ongoing reservations about Harvard’s Bitcoin strategy. He believes the approach has failed to deliver the expected performance.

His stance highlights skepticism toward the university’s crypto investments. It underscores doubts about Bitcoin’s role in the portfolio.

This scholarly analysis shows that the question of the sustainability of cryptocurrencies in institutional portfolios remains controversial.

Bitcoin and Ethereum Market Performance

The performance of the broader cryptocurrency market has a significant impact on Harvard’s strategy. The volatility of Bitcoin and Ethereum affects the endowment value of exposure to these assets.

Although prices have been falling lately, several investors have continued to hope that Bitcoin would make a good store of value in the long term.

Nevertheless, the 50% decrease in Bitcoin prices since October 2025 has challenged the strength of crypto-based portfolios such as Harvard’s.

The addition of Ethereum to the portfolio provides a diversification advantage. However, this is not convincing to all analysts like Subrahmanyam because there is no robust valuation model for digital assets.

Although Ethereum can eliminate certain risky areas in the crypto market, price and valuation remain unclear. This remains a challenge to institutional investors.

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