Harvard University's recent involvement in the cryptocurrency field has attracted attention, but its public investment focus has mainly been on Bitcoin rather than Ethereum. According to documents submitted to the U.S. Securities and Exchange Commission (SEC) in August 2025, Harvard Management Company (HMC) purchased 1.9 million shares of the BlackRock iShares Bitcoin Trust (IBIT) in the second quarter, valued at approximately $116.7 million, making it the fifth largest holding in the fund. This move marks the first clear involvement of Harvard's endowment fund in the cryptocurrency field, with an investment scale surpassing its holdings in Google's parent company, Alphabet.
However, Harvard's involvement in Ethereum (ETH) is not through direct public market operations but rather through early venture capital funds. For instance, the Harvard endowment fund is one of the early investors in the crypto venture capital fund Paradigm. Established in 2018, the initial capital of $400 million included donations from Harvard, Yale, Stanford, and other universities, all invested in ETH and BTC. Although Paradigm subsequently invested in several Ethereum ecosystem projects (like Uniswap, Compound, Lido, etc.), the specific returns and current holdings of Harvard as an LP (limited partner) have not been publicly disclosed.
The institutional trend of Ethereum and Harvard's potential role
Although Harvard has not directly increased its ETH holdings, its investment in Bitcoin is related to the current institutional trend of Ethereum:
Improvement of policy and regulatory framework: The GENIUS Act passed during the 'Cryptocurrency Week' in the U.S. in 2025 established a regulatory framework for stablecoins while clarifying the boundaries of the securities attributes of crypto assets, providing institutional capital entry guarantees for the Ethereum ecosystem. For example, listed companies like SharpLink Gaming have significantly increased their holdings of ETH through private financing, surpassing the Ethereum Foundation in total holdings.
Reevaluation of Ethereum's strategic value: As ETH staking yields increase (currently around 3%-4%), Layer2 scaling solutions are implemented (such as Arbitrum, Optimism), and companies trend toward including ETH on their balance sheets (such as BitMine, Bit Digital), Ethereum is evolving from a highly volatile asset to an institutional-level reserve asset. Asset management giants like BlackRock have applied for ETH staking spot ETFs, which, if approved, could further attract capital inflow.
Harvard's academic and ecological collaboration: Harvard University participates in industry cooperation through academic institutions such as the Blockchain Club. For example, in 2024, the Harvard Blockchain Club joined the Dubai 'Blockchain for Good Alliance' (BGA) to collaborate with organizations like Solana and ConsenSys to promote the social applications of blockchain technology. Additionally, the Harvard School of Public Health previously collaborated with ConsenSys to improve health and safety conditions for factory workers using the Ethereum blockchain.
Market impact and risk warnings
News of Harvard's investment in Bitcoin triggered short-term fluctuations in the crypto market, with ETH prices briefly exceeding $4200 on August 9, 2025, marking a more than 8% increase within 24 hours. However, the following risks should be noted:
High volatility of cryptocurrencies: Although institutional entry provides liquidity, the price of ETH is still affected by market sentiment, technological iterations (such as progress on sharding scalability), and regulatory policies. For example, the 'short gamma' effect in the ETH options market in July 2025 caused significant price fluctuations.
Risk transmission of indirect investments: Projects like FTX, invested in by Paradigm, went bankrupt due to liquidity crises. Although Harvard did not directly hold related assets, its risk exposure through fund investments may affect the returns of the endowment fund.
Public opinion controversies in academic institutions: Some Harvard professors hold a conservative attitude towards cryptocurrencies. For instance, Professor Rogoff predicted that Bitcoin could drop to $100, and investment decisions for the endowment fund may face internal ethical and risk management scrutiny.
Summary
Harvard's strategy in the cryptocurrency space shows a characteristic of 'Bitcoin as the main focus, Ethereum as a supplementary' approach: diversifying asset allocation through public market investments in Bitcoin ETFs while indirectly participating in the Ethereum ecosystem through venture capital funds. This strategy reflects traditional institutions' cautious exploration of cryptocurrencies and aligns with the current industry trend of 'regulation guiding innovation'. For investors, the long-term value of ETH may depend more on its technological resilience (such as sharding, stateless protocols) and ecosystem activity rather than the short-term operations of a single institution.