Harvard University has reduced its Bitcoin exposure by more than 20% while opening a significant position in Ethereum, marking a notable shift in how one of the world’s largest endowments is navigating crypto market volatility. This move highlights how Harvard cuts Bitcoin exposure in response to evolving market dynamics.
According to recent filings, Harvard Management Company, which oversees the university’s $56.9 billion endowment, trimmed its holdings in BlackRock’s iShares Bitcoin Trust by approximately 21% during the fourth quarter. At the same time, it purchased nearly 3.9 million shares of BlackRock’s iShares Ethereum Trust, valued at roughly $86.8 million at quarter-end. This strategic decision is part of the broader trend where Harvard cuts Bitcoin exposure in favor of other crypto assets.
Despite the reduction, Bitcoin remains Harvard’s largest publicly disclosed crypto-related holding, worth about $265.8 million. The ongoing adjustments indicate a proactive approach as Harvard cuts Bitcoin exposure while exploring new opportunities in the crypto landscape.
A Portfolio Rebalance During Heightened Volatility
Understanding Why Harvard Cuts Bitcoin Exposure
The adjustment comes after months of sharp price swings in the crypto market.
Bitcoin surged to an all-time high near $125,000 in October before retreating below $90,000 by the end of the quarter. More recently, it traded around $67,897, down roughly 28% over the past month.
Such volatility can significantly impact large institutional portfolios. While some corporate treasuries have continued accumulating Bitcoin despite steep unrealized losses, university endowments typically prioritize diversification and capital preservation.
Japan-listed Bitcoin treasury firm Metaplanet, for example, reported more than $600 million in unrealized losses tied to its Bitcoin holdings for the fiscal year ended 2025. Although the company recorded revenue of 8.9 billion yen, up 738% year-on-year, it also booked an unrealized loss of approximately 102.2 billion yen based on year-end valuations.
Metaplanet has said it plans to accumulate 1% of Bitcoin’s total supply by 2027, requiring the purchase of around 175,000 additional coins over the next two years. The strategy highlights both conviction and the accounting risks that come with concentrated exposure.
Against that backdrop, Harvard’s decision appears more like a calculated rebalance than a wholesale shift away from Bitcoin.
Why Ethereum, and Why Now?
Harvard’s new Ethereum position was established through BlackRock’s iShares Ethereum Trust, a spot exchange-traded fund designed to track the price of ETH.
Using regulated ETF vehicles allows large institutions to gain crypto exposure without directly holding digital assets. For endowments, that structure reduces operational complexity and aligns better with traditional compliance frameworks.
Market timing may also be relevant. Ethereum has experienced its own correction, with analysts suggesting the asset could be approaching a technical bottom.
Fundstrat co-founder Tom Lee recently argued that deteriorating sentiment and weak price action indicate crypto markets may be in the late stages of capitulation. He cited technical projections suggesting Bitcoin could slide toward $60,000, while Ethereum might bottom near $1,890 after failing to hold support around $2,400.
Lee said Ethereum has effectively reached that zone and may require one final downside move before establishing a durable low. He suggested the broader downturn could end by April.
Still, Lee’s previous bullish projections, including forecasts that Bitcoin could exceed $150,000 and Ethereum could reach as high as $9,000, have drawn criticism after failing to materialize.
What This Means for Institutional Crypto Strategy
Online, Ethereum supporters quickly celebrated Harvard’s move as validation. But large endowments rarely make allocation decisions based on narrative alone.
The shift may instead reflect a more nuanced institutional approach to crypto exposure. Rather than concentrating solely on Bitcoin, allocators are increasingly treating Bitcoin and Ethereum as distinct assets with different risk profiles and long-term theses.
Bitcoin continues to dominate as a store-of-value asset. Ethereum, on the other hand, represents exposure to smart contract infrastructure and decentralized applications. Allocating across both can potentially balance volatility within a broader digital asset strategy.
The broader takeaway is that crypto allocations inside major institutional portfolios are becoming actively managed components rather than static bets. As spot ETFs improve liquidity and accessibility, reallocations can happen more efficiently.