Harvard Endowment Shifts Crypto Strategy: Trimming 20% Bitcoin, Entering Ethereum

Harvard University’s $56.9 billion endowment, managed by Harvard Management Company (HMC), has officially diversified its digital asset portfolio. According to a recent SEC filing, the university established its first-ever position in Ether (ETH) during the final quarter of 2025, even as it scaled back its existing Bitcoin (BTC) exposure.

The filing reveals that Harvard purchased nearly 3.9 million shares of BlackRock’s iShares Ethereum Trust (ETHA). The position is valued at approximately $86.8 million. This marks a notable expansion of the university’s crypto strategy, moving beyond its initial Bitcoin-only approach.

Trimming the Bitcoin Position

While adding Ether to its balance sheet, Harvard reduced its stake in the iShares Bitcoin Trust (IBIT) by 21%. The endowment manager sold roughly 1.5 million shares of the Bitcoin ETF.

Despite this reduction, the iShares Bitcoin Trust remains Harvard’s largest publicly disclosed holding. As of the end of the reporting period, the university’s remaining stake in IBIT was valued at $265.8 million.

Key Portfolio Changes at a Glance

• New Position: 3.9 million shares of ETHA ($86.8 million)
• Reduced Position: Sold 21% of IBIT shares (~1.5 million shares)
• Remaining BTC Exposure: $265.8 million in IBIT
• Total Disclosure: IBIT remains the endowment’s largest equity holding.

Understanding the Market Dynamics

Analysts suggest that Harvard’s move may be less about a change in long-term sentiment and more about technical market dynamics. The shift occurred as Bitcoin’s price retreated from an all-time high of approximately $125,000 in October to finish the quarter below $90,000.

The Unwinding of the “mNAV” Trade

One potential driver for the sale of IBIT shares is the “unwinding” of a specific institutional trade. This strategy involves “Digital Asset Treasury” (DAT) companies—public firms like Strategy (MSTR) that hold massive amounts of Bitcoin.

When Bitcoin prices surged, these companies often traded at a high premium to their multiple of Net Asset Value (mNAV). For example, at its peak, Strategy traded near a 2.9 mNAV, meaning investors paid $2.90 for every $1.00 of Bitcoin the company held.

Many institutional investors capitalized on this by:

1. Holding Bitcoin indirectly through ETFs like IBIT.
2. Shorting the shares of treasury companies to bet that the “premium gap” would narrow.

As Bitcoin’s price corrected, the premium for these treasury companies collapsed. Strategy, for instance, saw its mNAV drop from 2.9 to 1.2. When this gap narrows, investors often close out their hedge positions, which involves selling their ETF shares.

Broader Institutional Trends

Harvard is not alone in adjusting its crypto exposure. Data from 13F filings shows a significant decline in institutional ownership of IBIT shares across the board. Total institutional holdings of IBIT dropped to 230 million shares in the fourth quarter, down from 417 million in the third quarter.

Other Notable Moves in the Harvard Portfolio

Beyond the digital asset space, Harvard Management Company made several significant adjustments to its broader equity portfolio. The endowment manager increased its exposure to the semiconductor and technology sectors while trimming several “Magnificent Seven” holdings.

Increased Stakes:

• Broadcom (AVGO)
• TSMC (TSM)
• Alphabet (GOOGL)
• Union Pacific (UNP)

Decreased Stakes:

• Amazon (AMZN)
• Microsoft (MSFT)
• Nvidia (NVDA)

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Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. All data is based on publicly available SEC filings and market reports.