Wisconsin State Investment Board Ventures into Bitcoin ETFs with Multi-Million Dollar Stakes

The State of Wisconsin Investment Board (SWIB) has expanded its investment portfolio to include significant holdings in Bitcoin exchange-traded funds (ETFs), according to a recent filing with the U.S. Securities and Exchange Commission (SEC). This move indicates a growing interest in cryptocurrency investments from major institutional investors.

As of May 14, SWIB reported that it held substantial positions in two major Bitcoin ETFs: over 2.4 million shares in the BlackRock iShares Bitcoin Trust (IBIT) and more than a million shares in the Grayscale Bitcoin Trust (GBTC). These holdings are valued at approximately $100 million and $64 million, respectively, demonstrating a considerable exposure to cryptocurrency assets for the funds managed on behalf of the Wisconsin Retirement System.

The disclosure comes at a time when SWIB manages over $156 billion in total assets, with about 48% of these investments allocated to public equities. The investment portfolio also includes significant positions in cryptocurrency-related companies such as Coinbase, MicroStrategy, and Cleanspark.

This development was commented on by Bloomberg ETF analyst Eric Balchunas in a recent social media post, noting the unusual speed with which such large institutional investors have entered the Bitcoin ETF market. Balchunas highlighted this trend as a positive sign, suggesting that other institutions might soon follow, given that such entities often move collectively.

The report from SWIB aligns with similar disclosures from other leading financial institutions. Notably, Wells Fargo and JPMorgan Chase recently reported combined investments under $1 million in similar Bitcoin spot ETFs. In contrast, Susquehanna International Group declared a purchase exceeding $1 billion in various crypto ETFs during the first quarter of 2024, involving shares from GBTC, IBIT, as well as other funds like the Fidelity Wise Origin Bitcoin Fund and the ProShares Bitcoin Strategy ETF.

This flurry of activity follows the SEC’s January approval for the listing and trading of Bitcoin spot ETFs on U.S. exchanges. The regulatory body is also expected to make a decision on a pending application for a spot Ether ETF by asset manager VanEck by May 23.