Harvard University's aggressive bet on Bitcoin is facing headwinds. The oldest and wealthiest U.S. university increased its cryptocurrency exposure last quarter, raising its iShares Bitcoin Trust ETF holdings to nearly $500 million. Despite Tuesday's rebound, Bitcoin has fallen over 20% this quarter amid a broad crypto selloff affecting Wall Street, retail investors, and even meme coin holders—including the U.S. President-themed tokens.

Had Harvard sold its position before early October's price decline, it could have exited unscathed or even with modest gains. While the university's average purchase price remains undisclosed, if it still holds part or all of the 4.9 million ETF shares acquired last quarter, the best-case scenario suggests a 14% loss on those holdings. This assumes the shares were bought in early July when Bitcoin hit its quarterly low. Under this scenario, Harvard would have paid $294 million for shares now worth $255 million.

The additional 1.9 million ETF shares purchased in Q2—before this year's major rally—may fare slightly better. For Harvard's $57 billion endowment, the largest among U.S. universities, any crypto losses remain negligible. As of September 30, its reported Bitcoin exposure represented less than 1% of total holdings.