State of Wisconsin Investment Board Buys Over $160 Million Spot Bitcoin ETFs

Key Points:

• The State of Wisconsin Investment Board (SWIB) invested $164 million in spot Bitcoin ETFs, entering the cryptocurrency market.
• The move by SWIB, managing a $180 billion portfolio, may influence other state funds to invest in crypto.

The State of Wisconsin Investment Board (SWIB) has ventured into the cryptocurrency market by adding two spot Bitcoin exchange-traded funds (ETFs) to its portfolio, marking a significant move in traditional finance.

Read more: Bitcoin Spot ETF vs Futures ETF: Differences To Make The Right Investment Choice

State of Wisconsin Investment Board Ventures into Bitcoin ETFs

The addition in the first quarter included shares of BlackRock’s iShares Bitcoin Trust (IBIT) and Grayscale’s Bitcoin Trust (GBTC), collectively valued at $164 million as of March 31, according to a May filing with the U.S. Securities and Exchange Commission.

The State of Wisconsin Investment Board, a $180 billion investment fund, is now part of a growing trend among institutional investors embracing cryptocurrencies. David Krause, Professor Emeritus of Finance at Marquette University, emphasized that this shift could inspire similar actions from other state investment funds. He highlighted that approving the U.S. spot Bitcoin ETF in January has broadened investment opportunities, attracting substantial institutional interest and optimism within the crypto market.

Krause also pointed out that SWIB’s Bitcoin holdings represent a minor fraction of its total Assets Under Management (AUM), which stood at approximately $156 billion at the end of 2023. He mentioned that for any significant risk impact, an institutional investor like SWIB must allocate around 1-3% of its AUM to Bitcoin.

Spot Bitcoin ETF Approval Sparks Major Investments

The launch of the U.S. spot Bitcoin ETF has not only sparked increased investment activity but also driven Bitcoin prices to new highs in mid-March. The ETF’s continued inflows over 14 consecutive days underscore the growing institutional adoption of Bitcoin.

Additionally, other financial giants are warming up to Bitcoin. Susquehanna International Group (SIG) invested $1 billion across various spot Bitcoin ETF issuers, while BNP Paribas, Morgan Stanley, and UBS have also expanded their investments in the burgeoning crypto market.