In a significant move reflecting growing institutional interest in cryptocurrencies, the State of Wisconsin Investment Board (SWIB) has substantially increased its investment in bitcoin (BTC) during the last quarter of the year. As reported in a recent 13F filing, SWIB disclosed ownership of just over 6 million shares of BlackRock’s iShares Bitcoin Trust (IBIT) as of December 31, a notable upsurge from approximately 2.9 million shares only three months prior.
This strategic position was valued at $321 million at the end of the year, and would be worth approximately $588 million at BTC’s current price of around $98,000, highlighting the potential profitability of this investment.
SWIB has made headlines as the first fund of its kind to report a bitcoin ETF purchase in 2024, initially acquiring 94,562 shares of IBIT along with some shares of Grayscale’s Bitcoin Trust (GBTC), which it subsequently sold. This pioneering investment underscores the board’s proactive approach in navigating the evolving cryptocurrency landscape.
Additionally, the State of Michigan Retirement System has followed suit, reporting ownership of bitcoin ETFs including the ARK 21Shares Bitcoin ETF (ARKB) and two of Grayscale’s bitcoin products. This trend indicates a broader acceptance of cryptocurrency by institutional investors, enhancing its legitimacy within traditional finance.
Established in 1951, SWIB is responsible for managing over $156 billion in assets, encompassing funds from the Wisconsin Retirement System (WRS) and the State Investment Fund (SIF). The board’s primary role is to manage investments on behalf of state employees and other trust funds, demonstrating a commitment to diversifying its portfolio by including digital assets.
April 1 marks the deadline for institutional investors with at least $100 million in assets to report their quarterly holdings to the Securities and Exchange Commission (SEC). As the market closely scrutinizes these filings, industry analysts remain vigilant to determine whether large traditional finance firms have begun augmenting their portfolios with bitcoin ETFs since their introduction last year.
In conclusion, Wisconsin’s recent investments serve as a barometer for the increasing integration of bitcoin into mainstream financial practices. As institutional adoption accelerates, the implications for the cryptocurrency market could be profound, paving the way for broader acceptance and innovation in financial markets.
