Harvard University’s endowment fund has reduced its Bitcoin investment by approximately 20 percent while establishing a new position in Ethereum. This shift reflects the complex dynamics of the market and appears to be part of a strategy to eliminate transactions where Bitcoin treasury companies sell shares above their market net asset value (mNAV). As one of the largest academic endowment funds globally, Harvard diversifies its resources across various assets to ensure long-term financial stability. In recent years, cryptocurrencies gained significant prominence in its portfolio, especially following the rise in Bitcoin’s popularity. However, market volatility and uncertainty have prompted a rebalancing of these investments. Ethereum, the second most recognized and widely used cryptocurrency after Bitcoin, has attracted investor attention due to its performance and growth potential. Harvard’s new position in Ethereum signals the increasing importance of this cryptocurrency. Market experts suggest that decisions by major investors like Harvard can influence the direction of the crypto market. The reduction in Bitcoin holdings alongside increased Ethereum exposure indicates an effort to diversify crypto assets and capitalize on the prospects of different cryptocurrencies. Nonetheless, given the inherently volatile nature of the crypto market, these investments carry ongoing risks and fluctuations.
Source: coindesk
