In a significant move reflecting growing institutional acceptance of cryptocurrencies, Harvard University has boosted its holdings in the iShares Bitcoin Trust by an impressive 257%. As of September 30, the university”s stake in the Bitcoin ETF is valued at $442.8 million, making it the endowment”s largest disclosed position.
This increase marks a substantial leap from the 1.9 million shares reported in June. The latest figures reveal that Harvard now holds 6.8 million shares of the ETF, solidifying its status as the 16th-largest holder of this BlackRock-managed fund. The move underscores a notable shift among elite academic institutions towards embracing Bitcoin as a viable investment asset.
Bloomberg ETF analyst Eric Balchunas highlighted the rarity of top-tier endowments investing in ETFs, calling Harvard”s decision a strong validation for Bitcoin exposure. “It”s super rare/difficult to get an endowment to bite on an ETF—especially a Harvard or Yale,” he noted. Balchunas emphasized that this endorsement is significant for the ETF”s credibility.
Interestingly, this substantial allocation contrasts sharply with earlier skepticism expressed by some of Harvard”s own economists. Notably, Kenneth Rogoff, a Harvard professor and former chief economist at the International Monetary Fund, previously predicted that Bitcoin”s value would dwindle to a mere fraction of its current price. Rogoff has since acknowledged his misjudgment regarding Bitcoin”s role in the global economy and the complexities of regulatory frameworks.
Despite his earlier doubts, Rogoff”s recognition of Bitcoin”s potential reflects a broader trend. Harvard”s current Bitcoin investment represents approximately 0.75% of its $57 billion endowment, with Bitwise analyst Ryan Rasmussen predicting that this allocation could eventually rise to 1% and possibly 5% as other institutions follow suit.
In addition to Harvard, other institutional investors are also increasing their cryptocurrency exposure through regulated investment vehicles. The State of Michigan Retirement System, for instance, tripled its Bitcoin ETF holdings to 300,000 shares valued at $11.4 million in the second quarter. Meanwhile, the State of Wisconsin Investment Board holds over 6 million shares of the iShares Bitcoin Trust, amounting to approximately $387.3 million.
Harvard”s investment is part of a broader trend among universities and state pension funds exploring cryptocurrency. The University of Austin recently launched a $5 million Bitcoin investment fund, becoming the first major U.S. university endowment to focus on Bitcoin. As institutional interest grows, the cryptocurrency landscape continues to evolve, with universities leading the way in exploring digital asset opportunities.
Nevertheless, some experts remain cautious. Cornell University professor Eswar Prasad warns that cryptocurrencies are still viewed as speculative assets, lacking the stability required for institutional investment. Similarly, Brian Neale from the University of Nebraska Foundation expressed skepticism regarding cryptocurrency”s viability as an institutionally investable asset class.
