In a strategic shift revealing its evolving cryptocurrency strategy, the State of Wisconsin Investment Board (SWIB) has significantly altered its portfolio, boosting its holdings in BlackRock’s iShares Bitcoin ETF (IBIT) and reducing its exposure to the Grayscale Bitcoin Trust (GBTC), according to a recent filing with the U.S. Securities and Exchange Commission (SEC).
The new SEC filing indicates that SWIB now holds a substantial 6,060,351 shares of BlackRock’s iShares Bitcoin ETF. At the current trading price of $55.33 per share, this positions the state’s investment in BlackRock’s ETF at approximately $335.3 million. This marks a noticeable increase from May’s records, which reported ownership of 2,450,400 IBIT shares.
Conversely, the recent filings show no reported holdings in the Grayscale Bitcoin Trust, a stark contrast to the 1,013,000 shares valued around $57 million disclosed in their previous filing in May 2024. This adjustment underscores a possible shifting confidence or strategy on SWIB’s part, potentially in response to wider market trends or the performance of the individual funds.
The decision to enlarge their stake in BlackRock, the largest Bitcoin ETF with an impressive $56.38 billion in assets under management (AUM) according to Coinglass, demonstrates a robust endorsement in BlackRock’s market performance potential. This strategic rebalancing of assets underlines Wisconsin’s investment board’s desire to align with institutions that lead the market with prominent AUM, compared to Grayscale’s current standing at $19.28 billion.
Beyond Bitcoin, the SEC’s introduction of spot market Bitcoin ETFs in January 2024, followed by Ethereum ETFs mid-year, signifies growing institutional acceptance of cryptocurrency investments, contributing to the influx of capital into these digital assets.
This dynamic maneuver by SWIB highlights its adaptive strategy and confidence in BlackRock’s Bitcoin ETF, portraying a broader narrative of how state-backed funds are navigating the evolving landscape of digital asset investments. As cryptocurrency markets continue to evolve, other state investment boards may closely observe this pivot, potentially influencing future decisions across similar institutional players.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making investment decisions.
