Harvard Management Company just made a notable move in its crypto holdings. The HMC reduced its iShares Bitcoin Trust position by 21% in Q4 2025 while opening a new $86.8 million stake in the iShares Ethereum Trust.
This is not a massive portfolio shift in absolute terms, but for one of the world’s oldest and most conservative endowments, it’s a clear signal. Institutional preferences are tilting.
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What the Harvard Bitcoin reduction actually shows
The reduction in Bitcoin ETF exposure came as BTC struggled near yearly lows amid macro headwinds and gold/silver rallies showing exhaustion.
On the other hand, the new Ethereum position reflects growing comfort with ETH as the backbone of DeFi, tokenization, and onchain infrastructure.
Harvard is not dumping crypto altogether, far from it. They’re reallocating, and this fits a broader pattern. Institutions that entered via Bitcoin ETFs in 2024–2025 are now asking: is BTC still the only play?
Ethereum’s upgrades (Dencun, upcoming Prague/Electra) and its dominance in RWAs and stablecoins make it look less speculative and more like the “picks and shovels” of the onchain economy.
How this fits the institutional reallocation trend
Early institutional money flowed heavily into Bitcoin as the “digital gold” narrative. But as markets mature, allocators are looking for utility and yield.
Ethereum offers staking rewards, DeFi exposure, and tokenized asset settlement.
Harvard’s pivot echoes what we’ve seen from other endowments and funds quietly adding ETH exposure while trimming BTC weightings.
The move also highlights how ETF approvals created the on-ramp, but now institutions are using them to fine-tune strategies rather than go all-in on one asset.
What this means for retail and informed investors
Big endowments often lead the way. When Harvard reallocates, others notice. If ETH gains more institutional shelf space, it could mean steadier inflows, better liquidity, and less violent BTC-dominant cycles.
The downside? Bitcoin purists might see it as a sign BTC is losing its “pure” store-of-value status.
Harvard is choosing sides within crypto, and this quiet reallocation could foreshadow how institutions treat BTC vs. ETH in 2026.
Crypto market researcher and external contributor at Kriptoworld
Wheel. Steam engine. Bitcoin.
📅 Published: February 17, 2026 • 🕓 Last updated: February 17, 2026
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