Harvard endowment exits Ethereum position as crypto holdings shrink for third straight quarter

Harvard University’s endowment fund has completely divested its $87 million holding in BlackRock’s Ethereum ETF, marking the third consecutive quarter of declining cryptocurrency allocations for the institution. The sale occurred just one quarter after the endowment initially acquired the position in the fourth quarter of 2025, signalling a rapid refinement of its digital asset strategy.

The move follows a broader reduction in Bitcoin exposure, with the university reporting $117 million in shares of BlackRock’s IBIT Bitcoin ETF after selling 2.3 million shares since the prior quarter. Despite the trim, Harvard remains among the 25 largest holders of the Bitcoin ETF, according to data from Quiver Quantitative. The high water mark for the endowment’s crypto holdings was reached in the third quarter of 2025, when Bitcoin ETF holdings peaked at $442 million, making it the university’s most valuable public equity at the time.

Market conditions have provided a headwind for the endowment’s digital asset strategy. Ethereum, the second-largest cryptocurrency by market capitalisation, has fallen 29 per cent year-to-date, significantly underperforming Bitcoin’s 12 per cent loss over the same period. Over the past five years, Bitcoin has greatly outperformed Ethereum, a trend that appears to be influencing Harvard’s decision to exit the Ethereum market entirely while maintaining a residual Bitcoin position.

Bloomberg analyst Eric Balchunas noted that despite market slumps in parts of 2026, ETF inflows have remained resilient, with many investors adopting a multi-year horizon. He suggested that Harvard’s broader portfolio performance in traditional equities may help absorb losses in Bitcoin, potentially allowing the institution to hold its remaining position in hopes of a recovery. The endowment was the largest new buyer of BlackRock’s Ethereum ETF in the fourth quarter of 2025, according to Bloomberg analyst James Seyffart.

Harvard’s public equities account for only a small fraction of its $57 billion endowment, with its largest single holding being $232 million in TSMC shares. The university holds shares in 16 different public equities, alongside roughly $200 million in gold. The future direction of the fund’s investment strategy may shift as N.P. Narvekar, head of Harvard’s endowment, has indicated a potential retirement date of late 2027, which could impact how the institution manages its complex asset allocations moving forward.