The State of Wisconsin Investment Board (SWIB) has chosen BTC, investing $164 million in BlackRock and Grayscale’s Bitcoin ETFs.
This strategic decision, reported in a recent 13F document filed with the Securities and Exchange Commission (SEC), highlights the entry of the first traditional institutions into the cryptocurrency market, marking a significant change in the financial landscape.
Wisconsin: Details of the Investment on BlackRock’s Bitcoin spot ETF
From the report of May 14th, it emerges that SWIB owns over 2.4 million shares of BlackRock iShares Bitcoin Trust (IBIT) and more than one million shares of Grayscale Bitcoin Trust (GBTC).
These investments, valued at approximately 100 million and 64 million dollars respectively, highlight a significant commitment to integrating cryptocurrencies into institutional portfolios.
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, commented that SWIB’s investment is a positive signal for the market.
We remind you that pension funds are known for their caution and selectivity, usually waiting for a new financial instrument to reach a certain level of liquidity before investing.
Balchunas has declared:
“The fact that they have invested so quickly demonstrates the confidence they have in the liquidity and stability of IBIT”
Implications for the Future
This decision by the Wisconsin Investment board is very optimistic, giving hope for future large inflows from institutions for the iShares ETF.
In fact, if other pension funds and institutions follow suit, we could see a greater adoption of Bitcoin, considering it an essential element of institutional investment portfolios.
According to the SEC report, other major banks, including JPMorgan Chase and Wells Fargo, have also started acquiring shares of the spot ETF, while Susquehanna International Group reported that during the first quarter of 2024 it made investments of over a billion in GBTC, IBIT, Fidelity Wise Origin Bitcoin Fund (FBTC), ProShares Bitcoin Strategy ETF (BITO) and Bitwise Bitcoin ETF.
Conclusions
Wisconsin’s pioneering investment in Bitcoin ETFs is not only a bold move, but also represents a signal of change in the financial sector.
Cryptocurrencies, once considered a niche for a few brave investors, are becoming a crucial component in institutional portfolios and are leaving hopeful for a possible future approval of the spot ETF for Ethereum.