Harvard’s Bitcoin ETF Surge
Harvard University has significantly increased its investment in Bitcoin exchange‑traded funds (ETFs), with a 257% boost in the third quarter, making it the institution’s largest disclosed position. This move highlights Harvard’s growing interest in cryptocurrency, with Bitcoin holdings now twice as large as its gold investments.
Holding Figures
Harvard’s Bitcoin ETF holdings reached $442.8 million as of September 30, a 257% increase from the previous quarter. At the same time, the university’s gold ETF holdings rose 99% to $235 million, preserving a 2‑to‑1 ratio of Bitcoin to gold. The $443 million Bitcoin position represents roughly 0.75% of Harvard’s $57 billion endowment.
Market Timing Concerns
The timing of this investment is problematic. Since the end of Q3, Bitcoin has dropped more than 20%, falling from $114,000 to around $92,000. That decline could translate into a 14% loss on Harvard’s third‑quarter purchases—about an $89 million paper loss on the recent position alone.
Context Within the Endowment
Despite the loss, the figure is a fraction of Harvard’s massive endowment. Over the past decade, however, the university’s annualized returns have lagged behind some Ivy League peers. Stanford finance professor Joshua Rauh notes that both Bitcoin and gold are often viewed as hedges against a potential collapse of the international monetary system.
Contrasting Faculty Predictions
Harvard’s sizable Bitcoin allocation runs counter to earlier predictions from its own economics faculty. In 2018, Harvard professor and former IMF chief economist Kenneth Rogoff warned that Bitcoin was more likely to trade at $100 than $100,000 within a decade.
Criticism and Concerns
Criticism of Harvard’s Bitcoin investment has intensified. Some critics point to the environmental impact of proof‑of‑work mining, while others question Bitcoin’s utility as a long‑term investment.
Market Outlook
Bitcoin is currently struggling to find direction amid ETF outflows and weakening market sentiment, creating uncertainty about whether it can reclaim the $100,000 threshold.
Takeaway
Harvard’s substantial investment in Bitcoin ETFs underscores the institution’s confidence in cryptocurrency as a viable asset class. Yet the recent market correction and ongoing debates about Bitcoin’s role as a hedge—and its environmental impact—highlight the complexities and risks of such investments.
