Bitcoin News Today: As ETFs Lose $2.8B, Pensions and Endowments Boost Bitcoin Holdings

Bitcoin's growing institutional embrace has taken a notable turn as universities and state pension funds increasingly allocate capital to digital assets, with Harvard University's 257% surge in Bitcoin ETF holdings underscoring a broader shift in institutional risk appetite. The Ivy League institution now holds $442.8 million in the iShares Bitcoin Trust (IBIT), according to a recent SEC filing, eclipsing its prior investments in tech giants like Microsoft and Amazon per cryptobriefing. This move, coupled with Emory University's $15 million stake in the Grayscale Bitcoin Mini Trust, highlights a nascent trend of academic and public-sector entities hedging against economic uncertainty through crypto exposure.

Harvard's third-quarter expansion into Bitcoin ETFs positions it as the 16th-largest holder of BlackRock's IBIT, a fund that dominates 35% of U.S. spot Bitcoin ETF inflows.

The university's 6.8 million IBIT shares, valued at $442.8 million, mark a dramatic reversal from the skepticism of its own economics faculty. Kenneth Rogoff, a former IMF chief economist, had predicted in 2018 that Bitcoin would trade near $100 by 2028, a forecast now invalidated as the asset trades above $95,000. "This is as strong a validation an ETF can get," said Eric Balchunas, a Bloomberg ETF analyst, emphasizing that Harvard's decision signals confidence in Bitcoin's role as a portfolio diversifier.

The trend extends beyond Harvard. Michigan's State Retirement System tripled its Bitcoin ETF holdings to $11.4 million in Q2 2025, while Wisconsin's Investment Board maintains a $387 million stake in IBIT. Emory's 2024 disclosure of a $15 million Grayscale Bitcoin position made it one of the first major U.S. endowments to embrace crypto-linked products according to recent disclosures. These moves align with a $60.8 billion net inflow into U.S. spot Bitcoin ETFs since their 2024 launch, with BlackRock's IBIT capturing 35% of new investments.

However, the institutional enthusiasm contrasts with ongoing market fragility. While Bitcoin ETFs now manage $137 billion in assets, recent data reveals a retreat in institutional buying. Spot Bitcoin ETFs offloaded $2.8 billion in October, per Bloomberg, as macroeconomic uncertainty and profit-taking pressures dampened inflows. Ethereum's ETFs, meanwhile, have seen persistent outflows, with nine U.S. funds shedding $107 million on Tuesday alone. Analysts like Markus Thielen of 10X Research warn of potential rebalancing risks: "If Bitcoin underperforms, risk managers may urge clients to scale back positions," he said.

Technical indicators add complexity to the outlook. Bitcoin recently tested a descending trendline near $110,000, with a break above this level potentially targeting $116,000. Yet, the Supertrend indicator remains bearish below $114,492, suggesting the broader uptrend remains corrective. Morgan Stanley analysts advised taking profits, citing "fall season" dynamics as ETF inflows wane.

Despite these headwinds, institutions appear undeterred. Harvard's simultaneous 99% increase in gold ETF holdings to $235 million reflects a dual strategy of hedging against both economic instability and crypto volatility. Bitwise analyst Ryan Rasmussen anticipates Harvard's Bitcoin allocation could rise to 1% of its $57 billion endowment, with eventual goals of 5% as peer institutions follow suit.

The institutional pivot toward digital assets underscores a fundamental shift in asset-class perceptions. While skeptics like Cornell's Eswar Prasad caution against Bitcoin's speculative nature, the growing participation of endowments and pensions signals a maturing market-one where Bitcoin is increasingly viewed as a strategic, if volatile, hedge.