Dartmouth’s Endowment Loses $2 Million Due to Crypto Decline

One could say the crypto bubble has burst—and Dartmouth’s endowment has taken a significant hit. Recent figures reveal that the prestigious U.S. university’s three major crypto ETFs have lost value, with around $2 million vanishing in the last few months. Affected are the Bitwise Solana Staking ETF, the Grayscale Ethereum Staking ETF, and the BlackRock iShares Bitcoin ETF. Combined, these positions now total roughly $12 million—a far cry from their previous value.
How It Happened
Dartmouth isn’t exactly known for conservative financial strategies—and in recent years, its leaders have heavily invested in crypto. Staking ETFs were particularly appealing, promising passive income by holding cryptocurrencies and validating blockchain transactions. The Bitwise Solana Staking ETF, for example, benefited from Solana’s reputation as a fast and low-cost blockchain. The Grayscale Ethereum Staking ETF bet on Ethereum, the dominant smart contract platform, while the BlackRock iShares Bitcoin ETF was one of the first regulated Bitcoin funds.
But reality set in. After the crypto hype of early 2024, Bitcoin, Ethereum, and Solana all experienced sharp declines. Since Dartmouth’s ETFs were tightly linked to these blockchains, they suffered disproportionately. The BlackRock Bitcoin ETF fared the best, but Solana and Ethereum faced their own challenges.
Why the Market Isn’t Cooperating
Several factors are at play. First, the U.S. Federal Reserve’s interest rate hikes have made risky assets like crypto less attractive. Second, regu



latory uncertainty lingers—who wants to invest in an asset class where the rules could change overnight? Third, technical issues have plagued the space. Solana has faced network outages, and Ethereum’s shift to Proof-of-Stake, while beneficial long-term, introduced short-term instability.
What’s Dartmouth’s Next Move?
The university will likely reassess its strategy. Institutional investors often adjust positions when markets turn volatile, and Dartmouth may already be reducing or reallocating its crypto holdings. Whether it doubles down on crypto or returns to traditional assets remains to be seen.
Dartmouth isn’t alone—Harvard and other elite institutions have scaled back crypto investments. The market remains too unpredictable, and not everyone trusts it to deliver long-term stability.
What’s Ahead?
Two scenarios could unfold: Either the crypto market rebounds in the coming months, allowing Dartmouth to recover its losses, or the downturn persists, forcing the university to exit crypto—or at least drastically cut exposure.
The bigger question remains: Can crypto ever be a permanent fixture in endowment portfolios? Advocates highlight its growth potential and technological innovation, while critics point to extreme volatility and regulatory risks. Dartmouth’s decision will carry both financial and strategic weight.
One thing is clear: The recent decline underscores just how fast crypto markets can shift. The next few months will be critical—and Dartmouth will be watching closely to see where the journey leads.