Harvard Endowment Scales Back Bitcoin ETF, Opens Position in Ether ETF
Boston, Feb. 16, 2026 – The Harvard Management Company (HMC), which oversees the University of Harvard’s $56.9 billion endowment, filed a Form 13F with the U.S. Securities and Exchange Commission on Friday that shows a 21 % reduction in its holding of BlackRock’s iShares Bitcoin Trust (IBIT) and the initiation of a new stake in BlackRock’s iShares Ethereum Trust (IETH).
What the filings reveal
| Asset | Holding (as of 31 Dec 2025) | Change vs. Q3 2025 | Approx. market value |
|---|---|---|---|
| iShares Bitcoin Trust (IBIT) | 5.4 million shares | –1.4 million shares (‑21 %) | $265.8 million |
| iShares Ethereum Trust (IETH) | 3.8 million shares | New position | $87 million |
The endowment’s Bitcoin exposure fell from $442.9 million in the third quarter of 2025 to $265.8 million at the close of the fourth quarter, while its newly‑opened Ether position now represents roughly 0.15 % of the total portfolio. Combined, the two BlackRock crypto ETFs account for about 0.62 % of Harvard’s assets under management.
Market backdrop
The portfolio adjustments were made amid a prolonged pull‑back in the broader cryptocurrency market. Bitcoin’s price slipped below $90,000 in January 2026 after reaching more than $120,000 in July 2025. Ether experienced a similar decline, dropping under $3,000 from a peak above $4,000 during the same period. The volatility likely prompted HMC’s risk‑management team to rebalance its exposure to digital assets.
Why the shift matters
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Risk‑adjusted reallocation – By trimming its Bitcoin stake while adding Ether, HMC appears to be diversifying within the crypto‑asset class rather than exiting it entirely. Ether’s utility as the native token of the Ethereum network, which continues to host a large portion of decentralized finance and NFT activity, may offer a different risk‑return profile compared to Bitcoin’s store‑of‑value narrative.
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Alignment with broader portfolio moves – The filing also shows that Harvard increased its holding in Alphabet (Google’s parent) by roughly $100 million and reduced its Amazon exposure by about $80 million in Q4 2025. The crypto adjustments are part of a wider rebalancing effort rather than an isolated decision.
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Institutional confidence in regulated products – Both IBIT and IETH are spot‑exchange‑traded funds that provide regulated, custodial exposure to the underlying digital assets. Harvard’s continued participation signals that large, risk‑averse institutions remain comfortable with well‑structured, SEC‑registered crypto vehicles despite market turbulence.
- Potential influence on other endowments – Harvard’s endowment is frequently viewed as a bellwether for other university funds. The move could encourage peer institutions to re‑examine their own crypto allocations, possibly prompting a modest shift toward diversified exposure rather than a binary “in or out” stance.
Related developments
- AI‑driven hedge fund activity – In November 2025, Numerai, an AI‑focused hedge fund backed by several leading university endowments, raised $30 million in a Series C round. The fundraising round, which highlighted the involvement of “the smartest, most long‑term allocators,” lifted the price of its native NMR token by over 40 %. While not directly linked to Harvard’s crypto decisions, the episode underscores a growing appetite among academic investors for innovative, technology‑centric strategies.
Key takeaways
- Harvard’s endowment trimmed its Bitcoin ETF exposure by more than $175 million while launching a new $87 million Ether ETF position, reflecting a 21 % reduction in Bitcoin and a modest increase in overall crypto allocation.
- The adjustments were made during a period of notable price declines for both BTC and ETH, suggesting a risk‑management driven rebalancing rather than a strategic exit from digital assets.
- The crypto holdings remain a small slice (under 1 %) of Harvard’s total assets, but the endowment’s moves are closely watched by peers and may influence the broader institutional approach to regulated crypto investment products.
- Harvard’s rebalancing aligns with simultaneous shifts in its equity holdings, pointing to a comprehensive portfolio review rather than a targeted response to the crypto market alone.
As the cryptocurrency market steadies and regulatory frameworks mature, institutional investors like Harvard will likely continue to fine‑tune their exposure, balancing the pursuit of upside potential against the need for capital preservation.
Source: https://cointelegraph.com/news/harvard-stake-blackrock-bitcoin-etf-ether-investments?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
