Wisconsin Becomes First U.S. State To Make Mega Investment In Spot Bitcoin ETFs

Wisconsin has become the first state to disclose the purchase of Bitcoin. The State of Wisconsin’s Investment Board (SWIB) reported holding shares worth nearly $163 million in the newly introduced top spot Bitcoin exchange-traded funds (ETFs).

In a Tuesday 13A filing with the U.S. Securities and Exchange Commission (SEC), the government entity responsible for managing holdings of the Wisconsin Retirement System (WRS), the State Investment Fund (SIF), and other state trust funds revealed buying 94,562 shares of BlackRock’s iShares Bitcoin Trust (IBIT) in the first quarter of the year. The shares are now valued at $99.1 million. The investment board also acquired the shares of Grayscale’s Bitcoin Trust (GBTC) ETF worth $63.6 million.

Besides the Bitcoin ETFs, the Board has also invested in Coinbase, the largest crypto exchange in the United States, and MicroStrategy, a business intelligence firm that holds more Bitcoin on its balance sheet than any other publicly traded company. Other investments included shares of stock in Riot Platforms, CleanSpark, Marathon Digital, and Cipher Mining.

Investments From More “Big Fish” Institutions Coming

Bloomberg’s senior ETF analyst Eric Balchunas observed that the Wisconsin Board’s interest in spot BTC ETFs has come faster than expected. Nonetheless, he expects more institutions to hop on the Bitcoin train soon.

“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,” posited Balchunas in a May 14 X post. “Good sign, expect more, as institutions tend to move in herds.”

Wisconsin’s filing followed similar reports from major banking institutions, including UBS, Wells Fargo, and JPMorgan Chase, who reported less than $1 million combined in spot BTC ETFs. Moreover, quantitative trading company Susquehanna International Group disclosed to the SEC ownership of more than $1 billion worth of shares of the spot crypto ETFs in the first quarter of 2024.

Overall, these filings showcase examples of traditional institutions seeking exposure to the world’s largest crypto by market cap.