Harvard Boosts BlackRock Bitcoin ETF Investment
Harvard University dramatically increased its investment in BlackRock's Bitcoin exchange-traded fund, more than tripling its stake during the third quarter of 2025. According to reports, Harvard Management Company now holds 6.8 million shares of the iShares Bitcoin Trust ETF, a position valued at $442.8 million as of September 30. The university initially established this position in the second quarter of 2025 with approximately 1.9 million shares valued at $116.6 million.
The regulatory filing submitted on Friday reveals that the iShares Bitcoin Trust (IBIT) has become Harvard's largest investment among its publicly disclosed holdings. Reports indicate that this Bitcoin ETF position constitutes just over 20 percent of Harvard's reported U.S.-listed public equity holdings. While significant within its disclosed equities, the investment represents less than 1 percent of the university's total $57 billion endowment fund assets. An analyst noted that this investment positions Harvard as the 16th-largest holder of IBIT and marks the fund's most substantial position increase in the third quarter.
Diversification Beyond Bitcoin
In addition to its cryptocurrency holdings, Harvard also expanded its gold investments during the same period. The endowment nearly doubled its position in SPDR Gold Shares, acquiring 661,391 shares valued at $235.1 million. Throughout the quarter, the university maintained substantial investments in major technology companies, including Amazon, Meta, Microsoft, and Alphabet.
Challenging Traditional Investment Norms
University endowments historically tend to favor private equity and direct investments over exchange-traded funds. The purchase of the iShares Bitcoin Trust by Harvard has been described as a highly unusual move for an endowment of its scale. Earlier reports indicated that Harvard's initial Bitcoin ETF investment of $116 million represented approximately 0.2 percent of the total endowment value. The iShares Bitcoin Trust has achieved significant growth since its launch, accumulating over $86 billion in assets within 18 months and generating more annual revenue than BlackRock's S&P 500 ETF, despite being nine times smaller.
Harvard is now part of a select group of academic institutions incorporating cryptocurrency exposure into their investment portfolios. Brown University, for instance, purchased $4.9 million of IBIT shares in the second quarter. Emory University also increased its Bitcoin ETF holdings by 91 percent in the third quarter, exceeding one million shares valued at $42.9 million. While these allocations remain minor percentages of their total endowment assets, they signify a notable departure from conventional, conservative investment strategies.
The timing of Harvard's increased allocation coincides with a period of volatility in Bitcoin prices. Bitcoin experienced a decline, falling below $95,000 after reaching a low of $93,029 within a 24-hour span. Bitcoin ETFs saw net outflows totaling $1.11 billion in the trading week concluding on Friday. This price downturn temporarily erased some of the gains made earlier in 2025.
Institutional Adoption Reaches Key Milestones
Harvard's expanded investment reflects a broader trend of institutional acceptance of Bitcoin as a viable portfolio component. Data from one analysis indicated that institutional investors held $33.6 billion in Bitcoin ETF assets during the second quarter of 2025, a 3 percentage point increase from the previous quarter. Sovereign wealth funds, including Abu Dhabi's Mubadala Investment Company, also expanded their holdings, reaching $681 million by mid-2025.
The U.S. Securities and Exchange Commission's approval of spot Bitcoin ETFs in early 2024 removed significant operational hurdles for traditionally risk-averse investors. University endowments and pension funds had previously steered clear of cryptocurrencies due to complexities in custody and regulatory uncertainties. The introduction of regulated ETF structures provides familiar investment vehicles that align with institutional compliance requirements. Consequently, state pension funds across the United States, from Michigan to Florida, have now established Bitcoin exposure through spot ETFs or related financial instruments.
Despite these developments, some critics continue to voice concerns regarding Bitcoin's inherent volatility and its suitability for long-term institutional portfolios. A finance professor at Marquette University characterized Bitcoin as the most volatile asset class he has encountered. Conversely, proponents argue that modest allocations, typically between 1 to 2 percent, introduce portfolio risk comparable to that of major technology stocks. The increasing number of endowment investments suggests that institutional investment committees are growing more comfortable with small Bitcoin positions as part of diversified alternative asset strategies.
BlackRock's iShares Bitcoin Trust (IBIT) currently dominates the Bitcoin ETF market, managing nearly $75 billion in net assets and capturing 61.4 percent of the market share among U.S. Bitcoin ETFs. Harvard's investment decision serves as a validation of the product's appeal to institutional investors. The extent to which other elite endowments follow Harvard's lead will be a key indicator of whether this represents an isolated event or the beginning of a more widespread adoption of cryptocurrency investments by universities.