Harvard Reduced Bitcoin Portfolio by 20% and Started Investing in Ether: Analysis of Strategic Shift

Harvard’s $56.9 billion fund significantly restructured its positions in crypto assets last quarter, simultaneously executing two opposing moves: reducing investments in Bitcoin and opening a new position in Ethereum. This decision, reflected in an official notice to the SEC, indicates a deep reassessment of the approach to digital assets among the world’s largest investors.

New Investment in ETHA: Harvard’s Move to Diversify Ether

For the first time in its history, the Harvard endowment has acquired a position in a foreign asset through the iShares Ethereum Trust (ETHA) from BlackRock, obtaining about 3.9 million shares worth approximately $86.8 million. At the current price of Ether at $2.13K ( as of March 23, 2026 ), this position demonstrates the institution’s serious intent to include the second-largest cryptocurrency by market capitalization in its strategic portfolio. This move does not seem coincidental, especially considering the long period before Harvard decided to take such a step.

##Reducing Bitcoin Position by 20%: Strategic Retreat or Portfolio Rebalancing

Simultaneously with opening a position in ETHA, Harvard significantly reduced its exposure in the iShares Bitcoin Trust (IBIT), disposing of approximately 1.5 million shares, which accounted for about 20% of its initial position. Despite this 20% reduction, the bitcoin trust position remains the largest publicly disclosed crypto investment of the fund, valued at $265.8 million. This indicates that even after the reduction, Harvard still maintains significant interest in the largest cryptocurrency.

The event itself took place against the backdrop of the volatile price dynamics of Bitcoin in recent months. After reaching an all-time high of approximately $125,000 in October 2024, the price of BTC fell to values just below $90,000 by the end of the quarter. The current price of Bitcoin is $70.29K ( as of March 23, 2026, which reflects a prolonged correction from that peak.

Beyond Simple Portfolio Adjustment: The Mechanics of mNAV and Hardened Arbitrage

According to Andy Constant, founder of Damped Spring Advisors, a 20% position reduction may be a result of closing a more complex investment strategy. The main idea is that companies with significant crypto assets in their treasuries, the so-called DAT companies, often trade at a premium to the net asset value of their assets, measured through the net asset value multiple, mNAV.

As the price of Bitcoin rose, this premium increased. For example, MicroStrategy )MSTR(, known for its Bitcoin accumulation strategy, at one point traded with an mNAV of about 2.9, meaning that investors paid approximately $2.9 for every dollar of Bitcoin held in the company’s treasury. This premium reflects both MSTR’s core business and the company’s potential for further cryptocurrency accumulation.

Position Deployment: How Professionals Benefited from the mNAV Premium

Some experienced investors have developed a strategy to capture this gap. They indirectly owned Bitcoin through IBIT, while simultaneously opening short positions in MSTR and similar DAT companies. According to Konstan, such a configuration allowed for profitably exploiting the difference between the true value of the assets and the market price of the shares.

However, as the price of Bitcoin fell, this arbitrage unfolded. The stock prices of DAT companies, including MSTR, also decreased. Currently, MSTR is trading at an mNAV of approximately 1.2, representing a significant compression of the premium from a peak of 2.9. As these traders closed their short positions, they consequently got rid of their IBIT positions, contributing to external demand for Bitcoin bridges amid falling prices.

Portfolio Rebalancing Among Institutional Investors

Konstant also suggests another mechanism: traders may rebalance their portfolios due to the fact that the price of Bitcoin has nearly doubled over the past year, despite recent corrections. Such growth may have led to Bitcoin’s share exceeding the target asset allocation level in the portfolios of large institutions, which requires adjusting the position downward to maintain a balanced portfolio.

General scientific trend of reduction among institutional investors

Data from 13F reports, compiled by Todd Schneider on the platform 13.info and submitted to the SEC, confirms that Harvard’s position reduction is not an isolated event. According to this data, the total number of IBIT shares held by the reported entities in the fourth quarter was 230 million, compared to 417 million in the third quarter—a decrease of almost half. This suggests that many institutional investors were simultaneously executing similar restructurings, possibly for the same economic reasons.

Complete overhaul of Harvard positions: not just cryptocurrencies

Beyond crypto assets, Harvard has also significantly restructured its technology portfolio. The fund increased investments in Broadcom and TSMC, as well as raised its stake in Google’s parent company — Alphabet. At the same time, the fund reduced positions in giants such as Amazon, Microsoft, and Nvidia, and also cut investments in the railroad company Union Pacific.

These moves indicate a broader reorientation of Harvard’s strategy towards chip production and infrastructure, while previously popular positions in cloud computing and digital services are now viewed as less attractive. The 20% reduction in Bitcoin positions fits into this overall portfolio reshuffle, although it does not exclude further interest in Ethereum.

Changes in Harvard’s portfolio demonstrate how even the largest global funds are actively adapting to changing market dynamics, moving from simple ownership of cryptocurrencies to more complex diversification strategies. A 20% reduction is not a departure from cryptocurrencies, but a reassessment within this asset class.