Harvard

Harvard Cuts Bitcoin ETF Stake, Doubles Down on Ethereum with $86.8 Million Investment

February 17, 2026

Highlights

  • Harvard Management Company reduced its iShares Bitcoin Trust holdings in the fourth quarter.
  • The company opened a new $86.8 million position in the iShares Ethereum Trust.
  • Despite the cut down, Bitcoin is Harvard’s largest publicly disclosed holding with a value of $265.8 million at the end of the quarter.

According to an SEC filing, the Harvard Management Company (HMC) bought almost 3.9 million shares of BlackRock’s iShares Ethereum Trust (ETHA), which is valued at approximately $86.6 million.

The company also reduced its shares in the iShares Bitcoin Trust (IBIT) by 21%, selling off nearly 1.5 million shares. However, the bitcoin exchange-traded fund remains Harvard’s publicly disclosed holdings, currently valued at $265.8 million.

Such a step was taken after the Bitcoin price dropped from an all-time high of $125,000 in October and fell to $88,429 by October. According to Andy Constan, founder and chief investment officer at Damped Spring Advisors, Harvard’s move is mainly based on market dynamics and not overall sentiment.

Harvard’s sudden sell-off might come after it capitalized on Bitcoin treasury companies at premiums to the value of their BTC holdings using mNAV (multiple of net asset value). During Bitcoin’s price boom, digital asset treasury (DAT) firms like Strategy (MSTR) traded at high premiums to the value of the Bitcoin in their treasuries.

What does this portfolio adjustment suggest?

Harvard’s new ETF filings mainly project the shift in HMC’s publicly reported equity holdings. Regardless of the trimming, Bitcoin remains a significant holding of the institution. According to reports, its current value is at $265.8 million, exceeding its holdings in Alphabet, Microsoft, and Amazon.

Rebalancing Portfolios: A Broader Institutional Trend

A sudden trend of rebalancing portfolios as cryptocurrencies recorded their fourth consecutive week of outflows. According to reports, digital asset funds recorded $273 million in withdrawals last week, pushing the four-week outflows to $3.74 billion as per CoinShares data.

Regional flows varied, where the U.S. listed products recorded a sell-off of $403 million. On the other hand, Germany, Canada, and Switzerland collectively recorded an inflow of approximately $230 million.

Despite the broader market downturn, XRP and Solana have recorded a total inflow of $33.4 million and $31 million, respectively.

Scrutiny from academic experts

Harvard’s current decision has drawn criticism from academic experts, who questioned the sustainability of speculative crypto assets for long-term university endowments. They have pointed out the lack of intrinsic value. However, Harvard’s portfolio diversification measures of investing in ETH suggest a move towards a multi-asset view of the digital asset market.

Final Thoughts

Financial analysts view this shift as an institutional approach, rather than a loss of confidence in Bitcoin. The rebalance occurred when BTC experienced a major drop in 2025, where it recorded a plunge of $126,000 to $88,429. However, this move has received a lot of criticism. Avanidhar Subrahmanуam, a finance professor at the Universitу of California, Los Angeles, wrote that the addition of Ethereum deepens his doubts about Harvard’s strategу regarding digital assets. He also considers crуptocurrencу as an asset class whose valuation methodologу remains unclear.