Harvard's Shift Sparks Interest in Ethereum as Undervalued Opportunity

Investors in the cryptocurrency market are closely watching the recent decision by Harvard's endowment fund to trim its exposure to Bitcoin and invest in Ethereum. The shift has sparked interest among investors who believe Ethereum may be undervalued relative to Bitcoin, which has declined significantly since reaching an all-time high of $126,000 just a few months ago.

The iShares Bitcoin Trust, held by Harvard's endowment fund, saw its value decrease by 21% with the sale of shares. In contrast, the iShares Ethereum Trust, which was not previously owned by the fund, now holds approximately $86.8 million worth of shares. This move has led some to speculate that Ethereum could outperform Bitcoin in the coming year.

One reason for this optimism is Ethereum's ability to offer 'staking yield,' a feature that allows investors to earn additional passive income by staking their Ethereum. In contrast, Bitcoin uses a proof-of-work blockchain and does not directly offer staking yield. While regulatory concerns previously limited access to this feature, the pro-crypto approach of the Trump administration may now pave the way for institutional investors to participate.