Key Takeaways:

Harvard University’s $53.2 billion endowment is taking a sharper turn toward digital assets, with new disclosures showing a significant position in Bitcoin via BlackRock’s spot Bitcoin ETF. The investment places the world’s most recognized cryptocurrency alongside the Ivy League giant’s top blue-chip equity holdings.

According to a Form 13F filed with the U.S. Securities and Exchange Commission (SEC) on August 8, Harvard Management Company (HMC) held 1,906,000 shares of BlackRock’s iShares Bitcoin Trust (IBIT) as of June 30. The position was valued at $116,666,260, making it one of the largest single holdings in the university’s publicly reportable portfolio.

Percentage-wise, IBIT would constitute about 8% of the filings $1.4 billion in assets, numbering it in the same weight category as the stakes of Harvard in Meta Platforms and Alphabet. It is also significant that Bitcoin holds a much greater amount than the investment Harvard has in the SPDR Gold Trust (GLD), which is a mere 102 million dollars, and yet, a symbolic alteration in the trend of investing in real resources previously viewed as asset saving places, in favor of digital assets shows.

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Harvard’s relationship with digital assets goes back several years. In 2018, the university became one of the first major U.S. endowments to back crypto-focused venture capital funds. By 2019, SEC documents linked Harvard affiliates to token purchases in Blockstack’s qualified offering, and by 2021, multiple reports suggested direct Bitcoin purchases through exchange accounts.

Until now, however, such positions were opaque or small-scale compared to the endowment’s equity and bond allocations. The IBIT stake changes that narrative; it places spot Bitcoin exposure in the same portfolio table as holdings in Microsoft ($310M), Amazon ($235M), and Booking Holdings (~$182M).

BlackRock’s iShares Bitcoin Trust was approved by the SEC in January 2024 alongside 10 other spot Bitcoin ETFs. Since launch, IBIT has grown rapidly, reaching over $86 billion in net assets by early August, making it one of the largest ETF products in the world by AUM.

Harvard’s investment arrives as regulatory developments increase the product’s potential appeal. On August 6, the SEC approved a tenfold increase in the limit on options contracts for ETFs with derivatives including IBIT from 25,000 to 250,000. Analysts believe the move could draw more institutional trading activity and improve liquidity.

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Harvard is not alone in moving deeper into crypto-linked securities. Earlier this year, Emory University disclosed ownership of 2.7 million shares in the Grayscale Bitcoin Mini Trust, valued at over $15 million. Where other endowments and pension funds have been creeping forward with the same angle of away from direct coins custody and into regulated access such as ETFs.

Such a trend would have the potential to make this input a significant component in the demand pattern of Bitcoins with university endowments, asset management companies and corporation treasurers adding to the push.

Though the inclusion of Bitcoin in the latest filing by Harvard is over a small part of its overall international investments, it is a landmark day in the institutionalization of Bitcoin because it is on par with the largest equity interests, and ahead of gold. It also offers a glimpse of what could happen if other top-tier endowments follow suit: billions in fresh capital entering the Bitcoin market through regulated channels.

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