Harvard University, one of the most prestigious universities in the world, has aggressively increased the share of Bitcoin (BTC) exposure in its portfolio-allocated endowment part. Despite the general pessimism on spot Bitcoin ETF markets, Harvard has made an outrageous IBIT purchase.
$442 million: Harvard University triples its bet on BlackRock's IBIT
As noticed by Eric Balchunas, Bloomberg's senior ETF analyst, Harvard University just made BlackRock's iShares Bitcoin Trust ETF (IBIT) its largest portfolio asset. Recent purchases pushed the exposure to over $442 million in total.
The allocation of IBIT shares in Harvard's portfolio increased by $326 million. As a result, it is now bigger compared to Microsoft and Amazon stocks, which hold the second and third positions valued at $322 million and $235 million, respectively.
Balchunas noticed that the appearance — let alone dominance — of the spot crypto ETF in the portfolio of university's endowment is extremely rare, and represents the best validation for this class of assets:
It's super rare/difficult to get an endowment to bite on an ETF- esp a Harvard or Yale, it's as good a validation as an ETF can get.
Harvard has become the 16th largest holder of IBIT shares, the analyst added.
IShares Bitcoin Trust ETF (IBIT) is biggest exchange-traded product on spot Bitcoin. Despite significant outflows, it still sits at $80 billion AUM, four times bigger compared to its closest rival Fidelity Wise Origin Bitcoin Fund (FBTC).
Bitcoin spot ETFs under pressure this November, are institutions quitting?
As such, IBIT shares are now in charge of almost 21% of the Harvard University portfolio and 0.5% of its total endowment.
Meanwhile, Bitcoin spot ETFs have all chances to secure their absolutely worst month since their launch this November. The trading session of Nov. 13 with $866 million outflows is already the second worst one since January 2024.
Spot Ether ETFs are also bleeding, while XRP-, Litecoin- and Solana-based products are still too small to save the situation. The apathy in the ETFs segment reflects the general uncertainty of the cryptocurrency market and the mixed signals sent by institutional holders.
The bearish stance is amplified by the possibility of Bitcoin (BTC) dropping to the breakeven price for the majority of Bitcoin (BTC) miners, U.Today previously reported.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team