Harvard Management Company, in a significant strategic move, recalibrated its cryptocurrency investment portfolio during the fourth quarter of fiscal year 2025. A regulatory filing released on Friday confirmed the establishment of its initial position in an Ethereum exchange-traded fund, simultaneously coupled with a reduction in its existing Bitcoin holdings. By the quarter's close on December 31, the combined exposure to these two major digital assets amounted to $352.6 million.

The endowment’s investment manager made its first publicly disclosed investment tied to Ethereum by purchasing 3.87 million shares of BlackRock’s iShares Ethereum Trust. This stake was valued at $86.8 million as of December 31, marking a new direction in Harvard's approach to digital asset diversification.

Conversely, Harvard opted to trim its position in BlackRock’s iShares Bitcoin Trust. The firm held 5.35 million shares, valued at $265.8 million, at the end of the quarter. This represented a decrease of approximately 1.48 million shares, or about 21%, from the 6.81 million shares held in the previous quarter. Remarkably, despite this reduction, Bitcoin maintained its standing as Harvard’s largest publicly disclosed equity holding, surpassing its reported investments in prominent technology firms such as Alphabet, Microsoft, and Amazon.

This critical portfolio adjustment occurred during a particularly turbulent period for digital assets. Bitcoin experienced a peak near $126,000 in October 2025, subsequently declining to $88,429 by December 31, according to data from Bitcoin Magazine Pro. Over the same timeframe, Ethereum also saw a substantial decline of approximately 30% in its value.

Harvard’s investment strategy in Bitcoin has drawn criticism from academic observers, as reported by The Harvard Crimson. Andrew F. Siegel, an emeritus professor of finance at the University of Washington, characterized the endowment’s Bitcoin investment as inherently risky. He cited a 22.8% year-to-date decline and emphasized that Bitcoin’s risk is partly attributable to its fundamental lack of intrinsic value.

Beyond its cryptocurrency dealings, Harvard Management Company also executed other significant changes within its broader investment portfolio. A new $141 million stake was established in Union Pacific Corporation, one of the leading freight rail operators in the United States. This investment followed Union Pacific’s July 2025 announcement of a planned merger with Norfolk Southern, a deal projected to create the country’s first transcontinental railroad network. The quarter also saw exits from previous holdings, including the sale of its entire 1.1 million-share stake in Light & Wonder, a gambling products manufacturer that had been among its largest positions, and the liquidation of a smaller stake in Maze Therapeutics, a biotechnology firm focused on precision medicines. Furthermore, Harvard strategically increased its exposure to several technology companies, more than tripling its stake in Broadcom and raising holdings in Google and Taiwan Semiconductor Manufacturing Company, while concurrently reducing its positions in Amazon, Microsoft, and Nvidia.