Bitcoin News Today: Harvard's Bitcoin Bet Defies Past Skepticism as Institutions Embrace Crypto

Harvard University has dramatically increased its stake in BlackRock's iShares Bitcoin Trust (IBIT), now holding $442.8 million worth of the ETF-a 257% surge from its previous position. The endowment, which manages over $57 billion in assets, reported owning 6,813,612 shares of IBIT as of September 30, making it the largest single declared holding in its U.S. portfolio. This move underscores a broader shift in institutional finance, as traditional investors increasingly embrace crypto-backed ETFs despite recent volatility in Bitcoin's price.

The investment marks a departure for Harvard, which has historically favored private equity and real estate over publicly traded funds. According to Bloomberg ETF analyst Eric Balchunas, such allocations are rare for major endowments. "It's super rare/difficult to get an endowment to bite on an ETF-especially a Harvard or Yale," he noted on X. While the IBIT position represents just 0.6% of Harvard's total endowment, it ranks the university as the 16th-largest holder of the ETF.

The surge in IBIT holdings follows a similar expansion in gold, with Harvard's SPDR Gold ETF (GLD) stake rising 99% to $235 million. This dual push into digital and precious metals reflects a strategic pivot toward assets perceived as hedges against inflation and monetary dilution. Meanwhile, the university's earlier skepticism about Bitcoin-epitomized by economist Kenneth Rogoff's 2018 prediction that the asset would "crash to $100" rather than reach $100,000 by 2028-now appears at odds with its current allocation according to a recent analysis.

Harvard isn't alone in its Bitcoin ETF bets. Abu Dhabi's Al Warda Investments, managed by the Mubadala sovereign wealth fund, tripled its IBIT holdings to $517.6 million in the same period, while Emory University boosted its Grayscale Bitcoin Mini Trust (BTC) stake by 91%. These moves align with a record $60.8 billion in net inflows into U.S. spot Bitcoin ETFs since their launch in early 2024, with BlackRock's IBIT dominating the space by assets under management.

Despite recent declines-IBIT's value has dropped to $364.4 million as Bitcoin's price fell below $100,000-analysts argue Harvard's approach is long-term. MacroScope, a financial commentator, highlighted that institutional flows into Bitcoin ETFs persist regardless of short-term price swings. The university's filings suggest it views the asset as part of a diversified portfolio, balancing exposure to tech giants like Microsoft and Amazon with gold and crypto.

The decision has sparked debate. Some critics urge caution, noting Bitcoin's volatility and the risks of overexposure. Others, like X user Zane Hauck, see the move as validation of Bitcoin's role in institutional portfolios, arguing that endowments can afford to wait for long-term theses to materialize according to a recent report. With other Ivy League institutions, including Brown University, also dipping into Bitcoin ETFs, the trend could signal a broader acceptance of crypto in traditional finance as analysts suggest.