Bitcoin Nears $120,000 Again As El Salvador Opens Bitcoin Banks, Japan ETF Stalls

Bitcoin’s march to reclaim the $120,000 milestone again is gaining pace with a combination of tightening supply and interesting events around the world. 

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.

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El Salvador Opens Door To Bitcoin Investment Banks

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. 

There were multiple reports this week about Japan’s SBI Holdings filing for spot crypto ETFs. However, the company has clarified that it has not yet submitted any applications for crypto-related ETFs. Nonetheless, the company did note in its Q2 2025 earnings report that it is planning to launch crypto-asset-linked investment trusts and ETFs upon regulatory approval.

Harvard University Commits Over $116 Million To Bitcoin ETF

Institutional confidence in Bitcoin received a major boost with Harvard University’s decision to invest $116.6 million into BlackRock’s IBIT spot Bitcoin ETF. This interesting investment was revealed in a recent filing with the US Securities and Exchange Commission by the Harvard Management Company.

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.

Harvard’s allocation aligns closely with investment trends in the US, as US spot Bitcoin ETFs have attracted more than $54 billion in inflows since their launch in early 2024.

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The move comes at a time when liquidity on major exchanges is tightening, and it has contributed to an increase in bullish sentiment surrounding Bitcoin. 

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