In a significant shift in its investment strategy, Harvard Management Company has trimmed its Bitcoin position by 21% while establishing its first stake in an Ethereum exchange-traded fund (ETF), according to a regulatory filing released on Friday.
A New Direction in Crypto Investments
The filing reveals that Harvard’s investment manager, Harvard Management Company, purchased 3.87 million shares of BlackRock’s iShares Ethereum Trust, valued at $86.8 million as of December 31. This marks the first time Harvard has publicly disclosed an investment in Ethereum, signaling a strategic diversification in its cryptocurrency portfolio.
Reducing Bitcoin Holdings
Concurrently, Harvard reduced its position in BlackRock’s iShares Bitcoin Trust. The endowment held 5.35 million shares worth $265.8 million at the end of the quarter, down from 6.81 million shares in the previous quarter. This reduction represents a cut of approximately 1.48 million shares, or about 21% of its Bitcoin holdings.
Despite the reduction, Bitcoin remains Harvard’s largest publicly disclosed equity holding, surpassing its stakes in major tech companies like Alphabet, Microsoft, and Amazon. The combined exposure to both cryptocurrency funds totaled $352.6 million at the close of the quarter.
Market Context and Criticism
The portfolio adjustments come during a volatile period for digital assets. Bitcoin reached a peak near $126,000 in October 2025 but slid to $88,429 by the end of December. Ethereum also experienced a decline of about 30% over the same period.
Harvard’s investment strategy has faced criticism from academic observers. Andrew F. Siegel, an emeritus professor of finance at the University of Washington, described the endowment’s Bitcoin investment as risky, citing a 22.8% decline year-to-date and emphasizing Bitcoin’s lack of intrinsic value.
Beyond Crypto: Diversifying into Traditional Sectors
Beyond its crypto investments, Harvard opened a new $141 million stake in Union Pacific Corporation, one of the largest freight rail operators in the United States. This move follows Union Pacific’s announcement of a planned merger with Norfolk Southern, which is expected to create the country’s first transcontinental railroad network.
Harvard also made significant changes to its other holdings. It sold its entire 1.1 million-share stake in Light & Wonder, a gambling products manufacturer, and liquidated a smaller stake in Maze Therapeutics, a biotechnology firm. The endowment increased its exposure to several technology companies, more than tripling its stake in Broadcom and raising holdings in Google and Taiwan Semiconductor Manufacturing Company. It also reduced positions in Amazon, Microsoft, and Nvidia.
Looking Forward
Harvard’s strategic adjustments reflect a cautious approach to managing risk in a rapidly changing market. By diversifying its portfolio and balancing investments in both traditional and emerging sectors, the endowment aims to navigate the complexities of the current economic landscape. As the crypto market continues to evolve, Harvard’s moves could signal a broader trend among institutional investors toward more diversified and balanced investment strategies.
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