Harvard's Bitcoin Investment Underwater
Harvard's position in Bitcoin ETFs is now approximately $40 million underwater following a sharp cryptocurrency selloff that diminished the value of its substantial stake. This situation is detailed in the latest SEC filing associated with its disclosure.
The university significantly increased its holdings in the iShares Bitcoin Trust ETF during the previous quarter, bringing its investment close to $500 million. Despite a brief rebound on Tuesday, Bitcoin's value has declined by over 20% this quarter.
The market-wide downturn affected various investors simultaneously, impacting Wall Street firms, retail traders, and even holders of the U.S. president's meme coin, with Donald Trump returning to the White House.
Harvard maintained its holdings as prices fell. Traders across exchanges experienced heavy liquidations, while long-term holders saw their earlier gains rapidly diminish.
Had Harvard divested its holdings in early October, the university could have exited the market at breakeven or with a modest profit before the significant price slide occurred. The specific average purchase price for Harvard's stake is not publicly disclosed. If the university continues to hold some or all of the 4.9 million shares acquired last quarter, the most optimistic scenario now indicates a 14% loss.
This calculation assumes that the purchase took place in early July, a period when Bitcoin was trading at its lowest point for the quarter. Under this timing assumption, Harvard would have invested approximately $294 million for shares that are now valued at around $255 million.
An additional 1.9 million shares purchased in the second quarter, prior to the anticipated 2025 market run-up, are likely showing smaller losses or narrow gains. The precise financial outcome depends on the exact timing of these purchases.
Bitcoin Slump Cuts Into Harvard's Trade
On paper, this loss represents a minor impact on Harvard's overall financial standing. The university manages an endowment valued at $57 billion, making it the largest in the United States. The Bitcoin position, as reported on September 30, constituted less than 1% of its total assets. Nevertheless, the timing of these events highlights the increasing integration of Bitcoin within large institutional portfolios. Substantial capital continued to flow into Bitcoin even as prices surged far beyond previous market cycles. Before the recent pullback, Bitcoin had appreciated by 34% in 2025, reaching a record high above $126,000.
Harvard's broader investment performance has shown varied results over time. In the past decade, the endowment has achieved an annualized return of 8.2%, ranking ninth out of ten among Ivy League and peer institutions tracked by Markov Processes International. Performance has improved under the leadership of its current chief, N. P. “Narv” Narvekar.
During his eight-year tenure, the endowment has recorded an annualized return of 9.6%. For the fiscal year ending June 30, Harvard reported an 11.9% gain, falling slightly behind the Massachusetts Institute of Technology, which achieved 14.8%, and Stanford University, with 14.3%.
Other Institutions Hold Smaller Crypto Stakes
Several other universities also disclosed cryptocurrency exposure during the third quarter, albeit at significantly lower investment levels. Brown University reported holdings of approximately $14 million in the BlackRock Bitcoin ETF.
Emory University disclosed an investment of roughly $52 million in the Grayscale Bitcoin Mini Trust ETF. For long-term investors such as endowments and pension systems, paper losses do not always necessitate immediate action, provided sufficient cash reserves are available in other portfolio segments. Many large funds have previously navigated extreme cryptocurrency market fluctuations.
Public pension funds were among the asset classes that experienced significant downturns during the market crash in 2022. Since that low point, Bitcoin prices have more than quintupled, recovering value for investors who remained invested.
Some investors continue to view cryptocurrency as unsuitable for long-term holding periods. Jay Hatfield, chief executive of Infrastructure Capital Advisors, articulated this perspective clearly when he stated, "When you’re gambling, you need to sell it, not hold it." Harvard's current investment remains contingent on the future performance of Bitcoin.