The State of Wisconsin Investment Board (SWIB) has boosted its exposure to BlackRock’s Bitcoin ETF, a trend slowly growing among institutional investors. SWIB disclosed that as of June 30, it owns 2,898,051 shares in BlackRock iShares Bitcoin Trust (IBIT), an increase from the 2,450,400 shares revealed in May; meanwhile, the board has divested from Grayscale Bitcoin Trust (GBTC).
Wisconsin Board Commits More to Bitcoin ETF
SWIB’s latest SEC filing shows a 447,651 share increase in its BlackRock Bitcoin ETF position. This decision aligns with the board’s commitment to the idea that Bitcoin is a good long-term investment vehicle. SWIB’s total holdings in IBIT are now valued at around $99 million, which shows that the institution has placed a significant stake in the cryptocurrency market.
The board’s choice of increasing its exposure to BlackRock’s ETF and selling out GBTC indicates direct exposure to Bitcoin through spot ETFs. This approach is in sync with the industry’s overarching theme of preferring spot Bitcoin ETFs over other forms of crypto products. SWIB’s action may prompt other institutional investors to reconsider how much they have invested in digital assets.
SWIB Exits GBTC for BlackRock Bitcoin ETF
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Nevertheless, while SWIB has increased its investment in IBIT, it has closed out its exposure to Grayscale’s GBTC. As of May, the board had 1,013,000 shares in GBTC, which it has now completely sold off. This exit aligns with a general trend of Institutional Investors moving away from GBTC and into ETFs such as BlackRock’s IBIT.
This is not the first time SWIB has divested from GBTC and shifted its attention to IBIT; it is part of a wider strategy. Other state pension funds are also inclined to spot Bitcoin ETFs, as can be seen by the recent money flows into such products. This change may indicate a new approach to using Bitcoin in classic asset management models.
IBIT Set to Lead Bitcoin Fund Market
The strategic changes SWIB made indicate increasing organisational faith in Bitcoin ETFs as a viable financial instrument. The board’s investment in BlackRock’s IBIT has increased as the ETF emerges as the third-largest owner of Bitcoin. Industry observers, including Bloomberg’s Eric Balchunas, have said that the IBIT could soon be the largest Bitcoin fund with more assets than even the creator of the cryptocurrency, Satoshi Nakamoto.
At the same time, other large financial companies are also raising their investment in Bitcoin ETFs. Goldman Sachs has reported that it has made significant investments in both BlackRock’s IBIT and Fidelity’s FBTC, which proves the tendency. These actions by large organizations mean that the Bitcoin ETFs are gradually being incorporated into conventional investment plans.
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