Wisconsin Invests $163 Million in Spot Bitcoin ETFs from BlackRock and Grayscale

The State of Wisconsin has made a significant move into cryptocurrency investments by purchasing shares in the iShares Bitcoin Trust (IBIT) and Grayscale Bitcoin Trust (GBTC), with a total investment amounting to $163 million. This decision marks a progressive step for the state's investment strategies, reflecting a growing institutional interest in digital assets.

The Wisconsin State Investment Board (SWIB), responsible for overseeing the asset management of the state’s pension system and other trust funds, executed these investments as part of their strategy to diversify and optimize the returns on the state's funds. As of December 31, 2023, SWIB was managing assets worth over $156 billion, demonstrating their significant influence and responsibility in the financial sector.

The investment details were disclosed in a Form 13F filing with the U.S. Securities and Exchange Commission. According to the document, SWIB purchased 94,562 shares of BlackRock’s iShares Bitcoin Trust (IBIT) valued at approximately $100 million. At the time of writing, the total assets under management (AUM) for this investment product by BlackRock stood at $16.9 billion, according to SoSo Value.

In addition to the BlackRock ETF, SWIB also allocated more than $63 million into Grayscale’s GBTC. The latest figures show that the AUM of this cryptocurrency fund is approximately $17.76 billion. These investments underscore the confidence and forward-looking approach of SWIB in incorporating cryptocurrency-based assets into their diversified investment portfolio.

Bloomberg analyst Eric Balchunas pointed out that typically, institutional investors like SWIB take about a year to adopt new asset classes. However, he noted that cryptocurrency ETFs have been an exception, demonstrating impressive performance since their approval in January 2024. "This is a positive sign, expect more as such organizations tend to move in herds," Balchunas emphasized.

The strategic entry into cryptocurrency ETFs by SWIB represents a broader trend where traditional investment entities are increasingly recognizing the potential of digital assets. The move by the Wisconsin State Investment Board, established in 1951, aligns with its long-standing mission to ensure robust financial management and growth for the state’s pension system (WRS), the State Investment Fund (SIF), and other trust products.

Previously, it was reported that hedge fund Bracebridge Capital had become the largest holder of shares in two spot Bitcoin ETFs, highlighting a growing trend of mainstream financial institutions integrating cryptocurrencies into their investment portfolios.