Harvard University’s endowment significantly increased its stake in the iShares Bitcoin Trust ETF, investing nearly $500 million, just before Bitcoin prices started to fall. As of this quarter, Bitcoin has dropped over 20%, and the recent rebound has not fully offset the losses.
Of the 4.9 million shares purchased last quarter, if bought at the lowest point, the cost was approximately $294 million, currently valued around $255 million—a paper loss of roughly 14%. However, this represents less than 1% of Harvard’s $57 billion endowment.
This move highlights the growing adoption of cryptocurrency among institutional investors. Other universities, such as Brown and Emory, hold smaller Bitcoin positions with limited impact.
For long-term investors like endowments, temporary paper losses may not be critical if prices eventually rebound. Nonetheless, the high volatility of cryptocurrencies poses significant risks for long-term holding.
