Harvard University has reduced its Bitcoin ETF holdings by over 20% while investing in Ethereum, reflecting shifting trends in the crypto market.
Harvard University's investment management firm has divested over 20% of its holdings in a Bitcoin exchange-traded fund (ETF) during the fourth quarter. Concurrently, the fund made its inaugural investment in an Ethereum-based product.
As of December 31, Harvard held 5.35 million shares of BlackRock's IBIT, valued at approximately $265.8 million, but reduced its stake by 1.48 million shares in this quarter.
Despite this reduction, the Bitcoin ETF remains the most significant public asset in Harvard's portfolio, outpacing investments in major tech firms like Alphabet, Microsoft, and Amazon.
Moreover, the university acquired 3.87 million shares of the iShares Ethereum Trust (ETHA), valued at $86.8 million, bringing the total value of its cryptocurrency assets to $352.6 million.
Harvard's investment strategy has faced scrutiny from some academic experts, who describe the investments as risky due to the perceived "lack of intrinsic value" and the recent downturn in cryptocurrency prices.
This decision reflects a broader trend in the market; data from CoinShares indicates that outflows from cryptocurrency products have persisted for the fourth consecutive week, with $173 million withdrawn last week alone, primarily from U.S. investors who pulled out $403 million.
In contrast, some regions, including Germany, Canada, and Switzerland, have seen inflows into crypto funds, indicating mixed market sentiment. Additionally, there has been growing interest in altcoins, with XRP and Solana seeing inflows of $33.4 million and $31 million, respectively.
It's noteworthy that from January 17 to 23, cryptocurrency investment products experienced outflows totaling $1.73 billion.
