Inside the Harvard's crypto play: Why the endowment is swapping bitcoin for ethereum ETFs

CoinDesk

by Helene Braun

March 3, 2026

AI-Generated Deep Dive Summary

Harvard University’s endowment is trimming its Bitcoin holdings while increasing its exposure to Ethereum ETFs, sparking questions about whether this shift reflects a strategic bet on Ethereum over Bitcoin or simply a response to market volatility and liquidity needs. According to experts, the move appears to be more about portfolio rebalancing than signaling confidence in one cryptocurrency over another. Michael Markov, co-founder of Markov Processes International, explains that crypto assets, particularly Bitcoin and Ethereum, experienced significant price swings in late 2025, with both losing around 25% of their value. This volatility has led Harvard to adjust its portfolio by reducing Bitcoin exposure and investing $56.6 million into BlackRock’s ether ETF. The decision is not unique to crypto but aligns with broader portfolio management practices. Endowments often rebalance their assets when certain sectors perform well, moving capital from outperforming areas to underperforming ones to maintain balanced risk levels. Harvard’s move also reflects a need for liquidity as it increases investments in private equity, which requires long-term, illiquid commitments. Selling public assets, such as crypto ETFs, is an easier way to free up cash for these obligations. This shift highlights institutional confidence in the broader crypto market rather than a lack of faith in Bitcoin. Harvard’s purchase of Ethereum ETFs aligns with a growing trend among large institutions diversifying their crypto holdings beyond Bitcoin. Samir Kerbage, chief investment officer at Hashdex, views this as evidence of increasing institutional demand for digital assets, supported by regulatory clarity like the GENIUS Act, which streamlines crypto investments for large allocators. Ultimately, Harvard’s move underscores the evolving role of crypto in traditional portfolios. While it may seem like a slight against Bitcoin, it reflects a strategic approach to managing risk and liquidity while maintaining exposure to the fast-growing digital asset sector. This signals that institutions are here to stay in crypto, even as they

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Originally published on CoinDesk on 3/3/2026