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Harvard University: Betting Big on Bitcoin

This week, Harvard University shook up the financial world. They announced a jaw-dropping $116 million plunge into Bitcoin via BlackRock’s much-buzzed-about exchange-traded fund (ETF).

A Massive Stake in the Crypto Game

Harvard’s endowment fund now proudly owns a whopping 1.9 million shares of the iShares Bitcoin Trust. It’s one of the boldest Bitcoin investments made by any American university. The details came out in a regulatory filing submitted to the SEC on August 8. With a $53.2 billion portfolio, Harvard Management Company certainly has the means. And this crypto move is already making waves.

Bitcoin: Among Harvard’s Top Holdings

Harvard’s Bitcoin stake now ranks as their fifth-largest public stock holding. Only giants like Microsoft, Amazon, Booking Holdings, and Meta are bigger. Surprisingly, their Bitcoin position outdoes even Google’s parent company Alphabet by around $3 million. Harvard’s Bitcoin exposure now surpasses their gold holdings, valued at $102 million through the SPDR Gold Trust.

Harvard’s Crypto Chronicles

But this isn’t Harvard’s first crypto dance. Their crypto curiosity dates back years. In 2019, they made a splash with a $5-10 million investment in Blockstack cryptocurrency tokens. Harvard, along with Yale and Brown, reportedly started buying Bitcoin directly from exchanges that same year.

Robert Kaplan, a Harvard business whiz, once said, “The endowment and its asset allocation is set up to anticipate you’re gonna have some volatile periods.” So, Harvard’s flexible approach paid off.

Why BlackRock’s ETF?

So, why BlackRock’s IBIT fund? It’s the king of Bitcoin ETFs, pulling in over $86 billion in assets since its debut in January 2024. Institutional players dig ETFs for their regulatory perks and ease compared to direct Bitcoin ownership. Plus, BlackRock’s Bitcoin ETF generates more revenue than its famous S&P 500 fund, thanks to lucrative fees.

Institutions Catch the Crypto Fever

Harvard isn’t alone in this crypto craze. Michigan’s state pension fund recently tripled its Bitcoin investment to $11 million. Brown University also dabbled with $13 million in BlackRock’s fund. The SEC has made it easier for the big guns like these to invest by upping their allowed options contracts from 25,000 to 250,000.

Policy Winds Favor Cryptocurrency

Government policies have warmed some to crypto. The Trump administration, for instance, has been all about crypto-friendly rules and even toyed with a Strategic Bitcoin Reserve idea. It’s clear that institutions are now warming up to Bitcoin, recognizing it as a portfolio diversification tool.

Harvard Leads the Way

Harvard’s leap tells the world Bitcoin is mainstream. The university’s substantial Bitcoin investment may coax others into similar moves. BlackRock’s ETF, buoyed by this high-profile backer, is now a favorite spot for institutional money, drawing billions from pensions and hedge funds alike.

Harvard’s bold investment not only marks a milestone for cryptocurrency but sets a trend others might soon follow. If Harvard says Bitcoin’s legit, maybe it’s time to pay attention.

Learn more about the growing trend.