Harvard Endowment Shifts Crypto Strategy, Reduces Bitcoin, Embraces Ether
By John Nada·Feb 16, 2026·5 min read
Harvard Management Company has reduced its Bitcoin ETF stake by 21% while increasing its investment in Ether, signaling a strategic shift in crypto holdings.
The Harvard Management Company has taken a significant step in its cryptocurrency investment strategy, reducing its stake in BlackRock's Bitcoin ETF by 21%. The endowment, which manages $56.9 billion, cut its position in the BlackRock iShares Bitcoin Trust ETF to $265.8 million as of December 31, down from $442.9 million in the previous quarter, according to a filing with the US Securities and Exchange Commission.
In conjunction with this reduction, Harvard also opened a new position in BlackRock's spot Ether ETF, purchasing over 3.8 million shares valued at approximately $87 million. This strategic pivot comes during a period of notable price volatility, as the price of Bitcoin plummeted to less than $90,000 from over $120,000 since mid-2025, while Ether similarly dropped below $3,000 from above $4,000 in the same timeframe.
The Harvard Management Company’s decision to adjust its cryptocurrency portfolio is particularly noteworthy given its status as one of the largest university endowments in the world. With assets amounting to $56.9 billion as of June 30, 2025, these adjustments represent a calculated approach to navigating the turbulent waters of cryptocurrency investment. Harvard's investment in BlackRock's Bitcoin ETF, now reduced to $265.8 million, reflects a broader trend among institutional investors who are increasingly wary of the high volatility associated with Bitcoin.
More specifically, the endowment offloaded more than 1 million shares of the Bitcoin ETF, reducing its holdings from 6.8 million shares in Q3 to 5.4 million shares in Q4 2025. This significant reduction, amounting to a 21% cut in its Bitcoin stake, signals a shift in strategy that may prioritize more stable or promising assets. In stark contrast, the investment in the Ether ETF, with over 3.8 million shares acquired, indicates a strong belief in Ethereum's potential to rebound in the current market environment.
The timing of these moves is critical, as both Bitcoin and Ether have experienced significant price fluctuations in recent months. Bitcoin's price has dropped dramatically, falling to less than $90,000 by January 2026, down from more than $120,000 at the start of July 2025. Similarly, Ether's price has seen a decline, dropping to under $3,000 from over $4,000 in the same period. This volatility in the cryptocurrency market reflects a range of factors, including regulatory developments, market sentiment, and macroeconomic trends.
Harvard's decision to pivot towards Ether, despite the overall downward trend in the market, may be based on an analysis of Ethereum's technology and utility in the blockchain ecosystem. Ethereum is known for its smart contract capabilities, which have made it a preferred platform for various decentralized applications, ranging from decentralized finance (DeFi) to non-fungible tokens (NFTs). This versatility may provide a more resilient investment opportunity compared to Bitcoin, which is primarily viewed as a store of value.
The growing interest in Ethereum, as evidenced by Harvard's investment, suggests that institutional investors might be looking at cryptocurrencies not just as speculative assets but as part of a broader technological revolution. Harvard’s shift could potentially influence other institutional investors to reevaluate their crypto portfolios and consider increasing their exposure to Ethereum, particularly as the network continues to evolve and expand its use cases.
Harvard's investment strategy also aligns with recent trends observed in the broader financial landscape. In Q4 2025, alongside its adjustments in cryptocurrency holdings, the endowment reported an increase in its position in Google's parent company, Alphabet, by almost $100 million, while simultaneously reducing its stake in Amazon by about $80 million. This dual approach of reallocating funds from one high-profile tech investment to another, along with the shifts in crypto holdings, reflects a strategic reassessment of asset allocations in response to changing market dynamics.
In addition to these shifts, the Harvard Management Company is part of a larger movement among elite university endowments that are increasingly exploring alternative investment strategies, including those involving artificial intelligence and blockchain technologies. Notably, Numerai, an AI hedge fund backed by “top university endowments,” reported in November that it raised $30 million in a funding round led by these endowments, which it described as “the smartest, most long-term allocators in the world.” Such developments indicate a growing recognition of the potential for innovative technologies to disrupt traditional investment paradigms.
As the cryptocurrency market continues to evolve, the implications of Harvard's decisions could reverberate throughout the investment community. With institutional investors like Harvard leading the charge in adjusting their strategies, other entities may feel compelled to follow suit, particularly if they aim to remain competitive in a rapidly changing financial landscape. By reallocating capital towards Ether, Harvard's endowment may be signaling a belief in the long-term potential of Ethereum compared to Bitcoin, which could influence the decisions of other institutional investors.
The shift in Harvard’s investment strategy also highlights the importance of adaptability in investment management. As market conditions fluctuate, the ability to pivot and reassess asset allocations is crucial for any portfolio manager, especially in the high-stakes realm of cryptocurrency. The transition towards Ether could be seen as a forward-looking strategy that positions the endowment to capitalize on potential future growth within the Ethereum ecosystem.