Harvard University recently revealed its $116.6 million allocation to BlackRock’s IBIT Bitcoin ETF. Meanwhile, El Salvador is welcoming Bitcoin-focused investment banks, while regulatory delays have put Japan’s first crypto ETF on hold.
El Salvador has passed a landmark Investment Banking Law that allows regulated investment banks, which are distinct from commercial lenders, to hold Bitcoin and other digital assets on their balance sheets. These institutions will cater exclusively to sophisticated investors and are required to have a Digital Asset Service Provider license and at least $50 million in starting capital.
The law, which was approved on Thursday, effectively paves the way for banks to choose to operate entirely as Bitcoin banks. Government officials say the framework is designed to attract foreign capital and cement the country’s status as a crypto finance hub. Critics, however, warn that the benefits may largely favor wealthy institutions over everyday Salvadorans.
This move comes as Japan’s entry into the Bitcoin ETF market is being held back. While US-based Bitcoin ETFs are making ground with inflows and jurisdictions like El Salvador move forward, Japan is yet to be home to a Spot Bitcoin ETF.
This sizable position elevates Bitcoin to a prominent role within Harvard’s equity portfolio, which is a notable shift in its investment choices, particularly following its decision last quarter to scale back exposure to several major Big Tech stocks. According to the filing, the endowment purchased 1.9 million shares of iShares Bitcoin Trust, valued at $116.6 million. This value places Bitcoin as the fifth-largest holding in Harvard’s equity portfolio behind Microsoft, Amazon, Booking Holdings, and Meta.
At the time of writing, Bitcoin is trading at $118,320, up by 4% in the past seven days.
Featured image from Unsplash, chart from TradingView
