Harvard University's investment management company sold over 20% of its shares in a Bitcoin ETF in the fourth quarter. At the same time, the fund made its first investment in an Ethereum-based exchange product.
According to reports, as of December 31, the university owned 5.35 million shares of BlackRock's IBIT, valued at $265.8 million. During the quarter, the fund reduced its position by 1.48 million shares.
Despite the partial sale, the Bitcoin trust remains the largest public asset in Harvard's portfolio, surpassing its stakes in tech giants Alphabet, Microsoft, and Amazon.
Additionally, in the fourth quarter, the university acquired 3.87 million shares of the iShares Ethereum Trust (ETHA) worth $86.8 million. The total valuation of the fund's crypto assets reached $352.6 million.
The university's crypto strategy has faced criticism in academic circles. Finance professors from the University of Washington and UCLA labeled the investments as risky, citing the "lack of intrinsic value" of the assets and the decline in prices.
Harvard's actions align with a broader market trend. According to CoinShares, outflows from crypto products have continued for the fourth consecutive week. In the previous week, investors withdrew $173 million, with the majority of sales occurring in the U.S. ($403 million).
Weekly inflow dynamics in crypto funds. Source: CoinShares.
However, regional data indicates a divergence in sentiment: funds in Germany, Canada, and Switzerland recorded inflows.
At the same time, demand for altcoins has increased, with inflows into XRP and Solana totaling $33.4 million and $31 million, respectively.
Recall that from January 17 to 23, cryptocurrency investment products saw outflows amounting to $1.73 billion.