Harvard's Shift to Ethereum Sparks Crypto Diversification

Harvard Management Company, the manager of Harvard's $50 billion endowment fund, has made a significant shift in its cryptocurrency portfolio. According to recent 13F filings with the SEC, the company has reduced its position in the iShares Bitcoin Trust (IBIT) by 21% and replaced it with a new investment in the iShares Ethereum Trust (ETHA).

This move is noteworthy as it indicates that institutional investors are diversifying their cryptocurrency exposure. The days of single-asset crypto investing may be over, as investors seek broader access to the crypto economy through various ETFs.

Ethereum's staking yield feature, which allows investors to earn additional passive income by staking their Ethereum, is a key advantage over Bitcoin. However, regulatory hurdles had previously limited institutional investors' ability to participate in this benefit. With the pro-crypto approach of the Trump administration, BlackRock is planning for an influx of new money from institutions seeking staking yield.