Ivy League University Invested $116 Million in Bitcoin ETF, Boosting Digital Currency's Record-High Price

In a remarkable turn of events, the world of finance has witnessed a surge in institutional interest in Bitcoin, the pioneering cryptocurrency. This shift in perception is evident in the significant investments made by a host of prestigious institutions.

Since its launch in January 2024, BlackRock's iShares Bitcoin Trust (IBIT) has been growing at an unprecedented rate. The asset under management (AUM) of IBIT has seen a staggering 34.5% increase since December 2024, rising from $51.7 billion to $86.3 billion. This growth has positioned IBIT as the second-largest holder of Bitcoin globally, trailing only the holdings of Bitcoin founder Satoshi Nakamoto.

Notably, the Harvard Management Company (HMC) holds 1.9 million shares of IBIT, valued at over $116 million. This investment makes IBIT HMC's fifth-largest single position, surpassing the fund's holdings in tech giants like Alphabet and NVIDIA, and is nearly on par with its investment in Meta.

The University of Austin (UATX) is another vocal proponent of digital assets and has a dedicated $5 million Bitcoin fund as part of its endowment. UATX is not alone in this endeavour, as institutions such as Brown University and the State of Michigan pension fund have also invested in US Bitcoin ETFs.

The participation of these institutions indicates a growing acceptance of Bitcoin as a viable, long-term asset. This trend is facilitated by the accessibility and regulatory clarity provided by Bitcoin ETFs. Besides heavyweights like BlackRock and Fidelity, other significant institutional shareholders in US Bitcoin ETFs include ARK Invest (ARKB) and 21Shares. These entities have all recorded notable inflows and manage large assets related to Bitcoin ETFs.

As of Q1 2025, over 1,300 institutional holders have invested in IBIT. The iShares Bitcoin Trust (IBIT) collectively holds just over 7% of the total bitcoin supply.

The surge in Bitcoin's price has also played a role in attracting institutional investors. Bitcoin's price is within arm's length of its previous all-time high of $123,091, and this morning, it surged past $120,000, currently trading at $122,170 according to CoinMarketCap data.

Notable investment banks and hedge funds, such as Goldman Sachs, Millennium Management, and Citadel Advisors, are also participating in Bitcoin ETFs. Emory University was the first American university to reveal an investment in the Grayscale Bitcoin Mini Trust (BTC) in late 2024, alongside Coinbase Inc. holdings.

Assets under management of IBIT took 374 days to cross the $80 billion AUM mark, five times faster than Vanguard's S&P 500, which took 1,814 days. This rapid growth underscores the increasing institutional interest in Bitcoin and the potential for further growth in the future.

In Abu Dhabi, Mubadala Investment holds over $500 million in Bitcoin-related funds as of Q1 2025. This investment further cements Bitcoin's position as a sought-after asset by institutional investors.

The rise in institutional investment in Bitcoin is a testament to the growing acceptance of cryptocurrency as a legitimate asset class. As more institutions invest in Bitcoin, it is likely that we will see continued growth in the value and adoption of this revolutionary technology.