Harvard University Increases Bitcoin ETF Bet By 257% To Become Its Largest Portfolio Holding

Harvard University increased its Bitcoin exposure by up to 257% in the third quarter. Harvard disclosed that it holds 6.8 million shares in the iShares Bitcoin Trust valued at $442.8 million, the largest disclosed position held by the school. 

Harvard Endowment Makes Huge Bet on Bitcoin

According to its latest 13F filing with the SEC, Harvard University’s endowment disclosed that it has 6,813,612 shares in BlackRock’s iShares Bitcoin Trust (IBIT), valued at $443 million stake as of September 30. This represents an increase in the school’s Bitcoin exposure by 257% quarter-over-quarter. 

As of June 30, Harvard reported that it held 1.9 million IBIT shares. This means that in the third quarter, the Ivy League university added 4.9 million shares worth $318.95 million through Harvard Management Company. The investment is notable as it accounts for 20.9% of Harvard’s reported U.S.-listed public equity holdings.

Bitcoin is now the largest known equity position held by Harvard Management Company, a wholly-owned subsidiary of Harvard University, which manages its endowment, pension assets, and other financial assets. 

A Notable Shift in Sentiment

This represents a massive change of heart regarding Bitcoin, considering that the institution had earlier shared some skepticism regarding the crypto asset. In 2018, a top Harvard professor and economist Kenneth Rogoff stated that Bitcoin was most likely to lose value in the next decade.

With Harvard having one of the world’s largest and most closely watched university endowments, the move has caught the attention of experts. Bloomberg ETF analyst Eric Balchunas has explained that it is a very significant move for the crypto industry, as it is ” super rare/difficult to get an endowment to bite on an ETF- esp a Harvard or Yale.”

According to Balchunas, Harvard pouring almost half a billion dollars into IBIT is as good a validation as an ETF can get. However, MacroScope’s analysts have questioned Harvard’s declaration of intent, asking, “What does Harvard see coming? ” 

With the move from Harvard mirroring those of sovereign wealth funds, the analyst forecasts that there could be potential short-term price moves. Despite the announcement, Bitcoin is yet to recover from its last week’s decline, and is down by 7% on the 1W timeframe, currently trading around the $95k range.

As a result of the decline, Bitcoin ETFs suffered massive outflows as investors took profits. Between Thursday and Friday last week, the 11 spot Bitcoin ETFs recorded outflows of approximately $1.33 billion. Despite a rocky week for Bitcoin, the move from Harvard highlights the long-term strategy that many institutional investors are adopting.

Other Institutions Are Also Loading Up on Bitcoin

Harvard’s Bitcoin investment strategy comes amidst a growing trend of institutions acquiring crypto. Brown University recently announced that it held more than $13 million in IBIT shares. 

Similarly, Emory University disclosed that it had increased its position in the Grayscale Bitcoin Mini Trust. Emory also holds a small allocation to IBIT in its third-quarter filing. This institutional adoption trend highlights the maturity of Bitcoin from a speculative asset into a treasury asset.