Harvard Bets Big on Bitcoin With $443M Stake, Outpacing Gold 2-to-1

Core Insights - Harvard University significantly increased its Bitcoin ETF holdings by 257% in Q3, making it the largest disclosed position with $442.8 million as of September 30 [1][2] - The university also raised its gold ETF holdings by 99% to $235 million, maintaining a 2-to-1 allocation ratio of Bitcoin to gold [1] - The $443 million Bitcoin position constitutes approximately 0.75% of Harvard's $57 billion endowment, placing it among the top 20 largest holders of the BlackRock-managed fund [2] Market Timing and Impact - Harvard's Bitcoin accumulation occurred just before a market correction, with Bitcoin's value dropping over 20% from $114,000 to around $92,000 since the end of Q3 [3] - This timing could result in a potential 14% loss on its Q3 Bitcoin purchases, translating to an $89 million paper loss if shares were bought at July's low point [3] Performance Comparison - Despite the losses, they represent a small fraction of Harvard's endowment, which has lagged behind some Ivy League peers in annualized returns over the past decade [4] - For the year ending June 30, Harvard reported an 11.9% gain, trailing behind MIT's 14.8% and Stanford's 14.3% [4] Institutional Perspectives - The substantial Bitcoin allocation by Harvard contrasts with earlier skepticism from its economics faculty regarding Bitcoin's long-term value [5] - Kenneth Rogoff, a Harvard professor, previously predicted that Bitcoin would likely trade at $100 rather than $100,000 within a decade, citing concerns over its transaction uses if money laundering and tax evasion were curtailed [6]