Wisconsin, the First State Board to Invest in BTC ETFs Through SWIB

In an SEC filing released on May 14, Wisconsin disclosed its ownership of several Bitcoin-backed instruments through its pension funds.

Wisconsin, a state in the Upper Midwestern region of the United States, has become the first state to own and disclose investments in BTC-backed instruments through its government board, the State of Wisconsin Investment Board (SWIB).

Reportedly, some companies and banks have recently disclosed investments in Bitcoin ETFs.

Disclosure of the Investment

On May 14, the SWIB released the new 13F report filed with the SEC. In the document, SWIB released details of its investments under the Wisconsin Retirement System Pension Fund.

As per the data reported in December 2023, the board had more than $156 Billion worth of assets under management scattered across investments in multiple organizations and instruments.

The current filing discloses ownership in BTC backed ETF products launched in January 2024. It highlighted that the board has bought more than a million shares of Grayscale Bitcoin Trust (GBTC) and over 2 Million shares of BlackRock iShares Bitcoin Trust (IBIT). 

Source: www.sec.gov

Moreover, the board holds investments in companies involved in businesses related to cryptocurrencies, namely Block, Coinbase, Marathon Digital, MicroStrategy, Riot Platforms, and Cleanspark.

SWIB Investments in GBTC and IBIT

GBTC and IBIT have attracted significant inflows since their launch from some of the big business houses, which led to their growth and enhanced trust in the products for general investors.

This trust has been further enhanced by the recent disclosure of investments by SWIB. The board manages the assets of the Wisconsin Retirement System Pension Fund. The fund allows saving for retirement with a sustainable return and offers various benefits to its beneficiaries. 

Cryptocurrencies have always been considered a riskier asset class, but investments from such a fund increase trust in crypto-backed instruments and attract funds from general investors. However, the board has not invested in cryptocurrencies directly. It has invested in instruments that are considered secured.

At press time, investments in GBTC are worth $59 Million contributed from the holding of 2,450,400 shares and IBIT is worth $92 Million from the holding of 1,103,000 shares. The collective investments amount to $150 Million, which is just a percent of the total size of the pension of over $150 Billion, reportedly.

Impact on BTC

This increase in investments from state bodies and several renowned companies and banks is expected to increase the demand for cryptocurrencies. This move from the SWIB is also increasing optimism for price growth.

The investors expect an increase in prices and a higher recognition of the digital asset space as a whole. Eric Balchunas, an ETF analyst, is pleased with the investment in IBIT from a state pension in the first quarter of 2024.

He wrote over X, “Wow, a state pension bought $IBIT in first quarter. Normally you don’t get these big fish institutions in the 13Fs for a year or so (when the ETF gets more liquidity) but as we’ve seen these are no ordinary launches. Good sign, expect more, as institutions tend to move in herds.”

The statement expresses an optimistic view for Bitcoin’s growth.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages ​​and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.