Harvard University Invests $116 Million Into Bitcoin Through BlackRock ETF

Harvard University made headlines this week after revealing a massive $116 million investment in Bitcoin through BlackRock’s popular exchange-traded fund.

The prestigious university’s endowment fund now holds nearly 2 million shares of the iShares Bitcoin Trust, making it one of the biggest Bitcoin investments by any American university.

The investment details came out in a regulatory filing submitted to the Securities and Exchange Commission on August 8. Harvard Management Company, which runs the university’s $53.2 billion endowment, disclosed holding 1.9 million shares of BlackRock’s IBIT fund as of June 30.

Bitcoin Becomes Harvard’s Fifth-Largest Investment

The Bitcoin investment now ranks as Harvard’s fifth-largest public stock holding. Only four tech giants sit ahead of it: Microsoft, Amazon, Booking Holdings, and Meta. The Bitcoin position even beats out Google’s parent company Alphabet by about $3 million.

What makes this move even more striking is that Harvard now holds more Bitcoin exposure than gold. The university’s gold holdings through the SPDR Gold Trust are worth roughly $102 million, about $14 million less than its Bitcoin stake.

Source: Sec.gov

The Bitcoin allocation represents about 8% of Harvard’s publicly reported portfolio, which totals over $1.4 billion. However, this only covers certain U.S.-listed securities and doesn’t include Harvard’s entire investment portfolio, which spans real estate, private equity, and other assets.

Harvard’s Long History with Cryptocurrency

Harvard’s Bitcoin investment didn’t come out of nowhere. The university has been exploring cryptocurrency for years, dating back to at least 2018 when several major universities started investing in crypto-focused venture funds.

In 2019, Harvard made headlines by investing $5-10 million directly in Blockstack cryptocurrency tokens. Sources also reported that Harvard had been buying Bitcoin directly on exchanges since 2019, along with other Ivy League schools like Yale and Brown.

Robert Kaplan, a Harvard business professor, previously explained the university’s approach to volatile investments: “The endowment and its asset allocation is set up to anticipate you’re gonna have some volatile periods.”

BlackRock’s Bitcoin ETF Dominates the Market

Harvard chose to invest through BlackRock’s IBIT fund, which has become the clear winner in the Bitcoin ETF space. Since launching in January 2024, the fund has attracted over $86 billion in assets, making it the largest Bitcoin ETF by far.

The fund’s success shows how institutional investors prefer regulated investment products over buying Bitcoin directly. ETFs eliminate the complex storage and security issues that come with owning cryptocurrency directly. They also provide the regulatory oversight that large institutions require.

BlackRock’s Bitcoin ETF has been so successful that it now generates more revenue for the company than its flagship S&P 500 fund, despite having much smaller total assets. The Bitcoin fund charges higher fees, which has made it extremely profitable for BlackRock.

Growing Institutional Interest in Bitcoin

Harvard isn’t alone in this trend. Other major institutions have been adding Bitcoin to their portfolios through ETFs. Michigan’s state pension fund recently tripled its Bitcoin investment to $11 million through a different Bitcoin ETF. Brown University also holds $13 million in the same BlackRock fund that Harvard uses.

The Securities and Exchange Commission has made it easier for institutions to invest in Bitcoin ETFs by increasing the number of allowed options contracts from 25,000 to 250,000. This change could boost demand for these investment products even more.

Bitcoin’s growing acceptance among traditional investors reflects broader changes in how institutions view cryptocurrency. What was once seen as too risky or speculative is now being treated as a legitimate asset class for portfolio diversification.

The crypto market has also benefited from supportive government policies. President Trump’s administration has established cryptocurrency-friendly regulations and even plans to create a Strategic Bitcoin Reserve.

Market Impact and Future Outlook

Harvard’s investment signals that Bitcoin has reached a new level of mainstream acceptance. When one of the world’s most prestigious universities puts over $100 million into Bitcoin, it sends a strong message to other institutional investors.

The move could encourage other university endowments and institutional investors to consider similar allocations. Harvard’s decision validates BlackRock’s recommendation that investors consider allocating 1-2% of their portfolios to Bitcoin.

For BlackRock’s Bitcoin ETF, Harvard’s investment adds another high-profile name to its growing list of institutional investors. The fund continues to attract billions in new money from pension funds, hedge funds, and other large investors.