Harvard University’s massive $56.9 billion endowment has made a notable shift in its crypto exposure. While trimming its position in Bitcoin-related holdings, the university simultaneously initiated its first-ever investment in Ether , signaling a strategic portfolio rebalance rather than a retreat from digital assets.

First Move Into Ether

According to a recent SEC filing, the Harvard Management Company (HMC) purchased nearly 3.9 million shares of iShares Ethereum Trust (ETHA), a spot Ether ETF managed by BlackRock.

The position is valued at approximately $86.8 million, marking Harvard’s first direct exposure to Ethereum through an exchange-traded vehicle.

Bitcoin Exposure Reduced by 21%

At the same time, Harvard reduced its stake in the iShares Bitcoin Trust (IBIT) by about 21%, selling roughly 1.5 million shares.

Despite the reduction, IBIT remains Harvard’s largest publicly disclosed crypto holding, still valued at $265.8 million.

The move follows a volatile period for Bitcoin, which dropped from an all-time high near $125,000 in October to under $90,000 by the end of the quarter.

Strategy Shift or Market Mechanics?

Experts suggest this adjustment may not reflect bearish sentiment toward Bitcoin. Instead, it could be linked to sophisticated market dynamics.

According to Andy Constan of Damped Spring Advisors, the reduction may represent the unwinding of a popular institutional trade strategy.

During Bitcoin’s strong rally, digital asset treasury companies such as Strategy (formerly MicroStrategy) traded at large premiums to their Bitcoin holdings , measured by a metric known as multiple of net asset value (mNAV).

At one point, Strategy traded near 2.9 mNAV, meaning investors paid $2.90 in stock value for every $1 worth of Bitcoin the company held.

Some institutional investors:

  • Bought Bitcoin exposure indirectly via IBIT

  • Shorted treasury companies trading at inflated premiums

As Bitcoin’s price corrected and treasury stock premiums narrowed , with Strategy now trading near 1.2 mNAV , that trade likely began unwinding.

Broader Institutional Trend

SEC 13F filings show institutional ownership of IBIT dropped significantly in Q4:

  • From 417 million shares in Q3

  • To 230 million shares in Q4

This indicates Harvard is not alone in reducing Bitcoin ETF exposure.

Portfolio Rebalancing Beyond Crypto

Harvard also:

  • Increased positions in Broadcom and TSMC

  • Added to Alphabet and Union Pacific

  • Trimmed stakes in Amazon, Microsoft, and Nvidia

This suggests a broader portfolio adjustment, not just a crypto-specific move.

What This Means

Harvard’s shift reflects:

  • Continued institutional participation in crypto

  • Growing acceptance of Ethereum alongside Bitcoin

  • Tactical rebalancing after significant market volatility

Rather than signaling a loss of confidence, the move highlights how large institutions dynamically adjust crypto exposure based on market structure, valuation spreads, and portfolio targets.