Harvard Increases IBIT Bitcoin ETF to $443M, Up 257%

The financial world continues to veer away from its old structure, with digital assets pushing into areas once dominated by traditional models. That shift was reinforced by Harvard University’s latest move, as the institution subtly expanded its exposure to the iShares Bitcoin Trust (IBIT), marking one of the most notable institutional actions in the crypto space this year.

Harvard Boosts Bitcoin Holdings

A recent filing with the SEC indicates that Harvard University has significantly raised its ownership in BlackRock’s iShares Bitcoin Trust, now holding about 6.8 million shares valued at $442.8 million as of September 30. This marks a 257% jump from the 1.9 million shares it held in the prior quarter.

This move by the Ivy League institution is a rare occurrence in traditional finance. Bloomberg senior ETF analyst Eric Balchunas noted that it is unusual for a major endowment to take positions in exchange-traded funds, particularly at institutions like Harvard or Yale. Although the stake represents roughly 1% of Harvard’s total assets, it is large enough to rank the university 16th among IBIT shareholders. The investment also became Harvard’s largest disclosed holding in its 13F filing and marked its most significant increase in the third quarter.

Meanwhile, this shift arrives years after Harvard economist and former IMF chief Kenneth S. Rogoff predicted in 2018 that Bitcoin faced a greater chance of falling toward $100 than reaching $100,000 by 2028. With just over two years before that timeframe closes, Bitcoin has moved in the opposite direction of that expectation, even trading around $126,000 in early October. Harvard’s latest adjustment in its investment portfolio indicates a clear departure from earlier skepticism and reflects how major players are reassessing cryptocurrency.

Institutional Flows and Diversified Investments

Financial commentator MacroScope remarked on X that long-term institutional flows continue to develop around Bitcoin, regardless of short-term volatility. In this context, Bitcoin ETFs offer a regulated way for institutions to access the asset, a structure introduced under formal oversight in early 2024. Data from SoSoValue shows that US spot Bitcoin ETFs have attracted $58.85 billion in total net inflows, raising their combined net assets to $125.34 billion, which represents 6.67% of Bitcoin’s total market capitalization.

Even as these inflows have accumulated, market sentiment has turned negative. This week, the BTC ETF sector recorded a net outflow of $1,111.7 million, as Bitcoin’s price declined to $95,000.

Harvard’s filings also show that its investments go beyond Bitcoin. Its holdings in the GLD gold ETF nearly doubled, rising 99% from 333,000 shares in June to 661,391 shares, with a total value of $235 million.