Harvard Management Co (HMC) Cuts BlackRock Bitcoin ETF Exposure by 21%, Rotates to Ethereum

Harvard Management Co (HMC), the entity managing Harvard University’s endowment, has trimmed its holdings in BlackRock Bitcoin ETF (IBIT). The company has opened a new multimillion-dollar position in an Ethereum ETF, indicating strategic rebalancing toward ETH.

Harvard Management Co Trims Bitcoin Exposure, Buys Ethereum

Harvard University’s endowment management company has sold 1.48 million shares of BlackRock’s IBIT, cutting its Bitcoin ETF holdings by 21% from $442.8 million to $265.8 million in Q4.

At the same time, it opened a fresh $86.8 million position in BlackRock Ethereum ETF (ETHA), according to US SEC filing. Harvard ended the quarter with almost $352.6 million in crypto exposure, with a shift in investments from BTC to ETH.

The recent adjustments suggest Harvard Management Co’s first bet into Ethereum following the October crypto market crash and predictions of a bear market. Bitcoin became a dominant position in its portfolio after it tripled its investment in BlackRock Bitcoin ETF (IBIT) in Q3 to almost $443 million, surpassing positions in tech companies such as Alphabet.

Some experts warned about Harvard’s continued investment in crypto. Andrew F. Siegel, emeritus professor of finance at University of Washington, wrote in a statement that HMC’s investment in Bitcoin is “risky.”

BlackRock Bitcoin ETF (IBIT) Outflows Wary Investors

A pivot to Ethereum likely happened as Bitcoin fell by more than 30% last quarter, failing its digital gold and safe-haven narrative. While gold and silver rallied, Bitcoin continued to remain under pressure despite the US dollar index slipping below 96.

Fundstrat’s Tom Lee emphasizing on Ethereum’s role in the artificial intelligence industry likely led to Harvard Management Co investing in ETH for the first time. He has also publicly advocated for Ethereum’s lead in other areas like decentralized finance, smart contracts, and layer-2 scaling.

BTC price fell 3% to $68,425 in the past 24 hours. Experts and analysts have predicted a further drop in Bitcoin to at least $55K. BlackRock Bitcoin ETF has recorded significant outflows since mid-January, causing investors to consider other assets. ETH price has tumbled 5% to $1,963 at the time of writing.