The Wisconsin Investment Board (SWIB) has revealed its investment positions in spot Bitcoin Exchange-traded funds (ETFs) managed by Grayscale and BlackRock. In a filing made on May 14 with the U.S. Securities and Exchange Commission (SEC), the government entity overseeing the Wisconsin Trust disclosed its ownership of over 2.4 million shares of the BlackRock iShares Bitcoin Trust (IBIT) and more than 1 million shares of the Grayscale Bitcoin Trust (GBTC). The combined value of these holdings amounts to approximately US$100 million and US$64 million respectively, indicating potential crypto exposure within the Wisconsin Retirement System.
SWIB reported total assets under management exceeding $156 billion as of December 2023, with a significant portion, around 48%, allocated to public equity investments. Apart from Bitcoin ETFs, the investment portfolio includes stakes in companies like Coinbase, MicroStrategy, and Cleanspark. It's worth noting that the SEC cautioned against assuming the accuracy and completeness of information provided by state entities.
Commenting on these disclosures, Bloomberg ETF analyst Eric Balchunas noted that institutional investors typically have a grace period of about a year during which ETF holdings might not be reported in Form 13F filings. However, the significant positions in Bitcoin ETFs reported by SWIB suggest a departure from the norm. Balchunas views this development as a positive indication and anticipates further institutional participation as they tend to act collectively.
These revelations from SWIB follow similar disclosures from major banks such as Wells Fargo and JPMorgan Chase, which reported modest spot BTC ETF holdings totaling less than $1 million. Conversely, Susquehanna International Group disclosed substantial investments exceeding $1 billion in spot crypto ETF shares during the first quarter of 2024. These investments encompass GBTC, IBIT, Fidelity Wise Origin Bitcoin Fund (FBTC), shares of the ProShares Bitcoin Strategy ETF (BITO), and the Bitwise Bitcoin ETF.
In January, the U.S. Securities and Exchange Commission (SEC) approved the listing and trading of a spot Bitcoin ETF on U.S. exchanges. As the final deadline for applications to asset manager VanEck approaches on May 23, experts anticipate a decision on the approval of spot Ethereum Exchange-traded funds.
