Wisconsin Investment Board Increases Holdings in Bitcoin Trust
The State of Wisconsin Investment Board (SWIB) has revealed a significant increase in its investment in BlackRock’s iShares Bitcoin Trust (IBIT) by acquiring 447,651 additional shares. This new purchase has brought SWIB’s total holdings to over 2.89 million shares as of June 30, as reported in a recent SEC filing.
Expanding Bitcoin Exposure
SWIB, an autonomous agency responsible for managing assets for Wisconsin’s retirement and state investment funds, has decided to broaden its Bitcoin ETF investments, surpassing the 2.5 million shares previously reported at the end of March. Furthermore, the filing also indicates that SWIB has divested its 1 million shares of Grayscale’s GBTC from the first quarter.
- SWIB has diversified its portfolio by investing in various cryptocurrency-related assets, including shares of Coinbase, Marathon Digital, Robinhood, and Block Inc.
- Despite the recent market downturn, spot Bitcoin ETFs have been gaining popularity and adoption among institutional investors.
- The State of Michigan Retirement System reported that they own 110,000 shares of the ARK 21Shares Bitcoin ETF (ARKB), representing nearly $6.6 million.
- This investment constitutes a small fraction, only 0.004%, of their total $143.9 billion assets under management as of December 2023.
Increasing Adoption Rates for BlackRock IBIT
BlackRock’s launch of the IBIT fund earlier this year has been remarkably successful, with over $20 billion in net inflows since its inception in January. This achievement has made IBIT the fastest-growing spot Bitcoin fund in the market. If the current trend continues, experts predict that IBIT could potentially surpass the Bitcoin holdings of Satoshi Nakamoto within a year.
- Goldman Sachs recently disclosed holdings exceeding $400 million in US spot Bitcoin ETFs, with approximately $238 million in IBIT.
- Other holdings include $79.5 million in Fidelity’s Bitcoin fund (FBTC) and $35 million in GBTC.
Notable Industry Moves Towards Bitcoin ETFs
The interest in Bitcoin ETFs is not limited to SWIB and Goldman Sachs. Jersey City Mayor Steven Fulop has announced plans to allocate part of the city’s pension fund to Bitcoin ETFs, signaling a significant shift towards incorporating cryptocurrency into municipal finance. Fulop disclosed via social media that the city’s pension fund is amending its SEC filings to include Bitcoin ETFs, aiming to modernize its financial strategies.
- This strategic move by Jersey City, the second-largest city in New Jersey, highlights a growing trend of institutional acceptance and adoption of digital assets.
Closing Thoughts
As more institutional investors like SWIB, Goldman Sachs, and others continue to increase their exposure to Bitcoin ETFs, the cryptocurrency market is witnessing a significant shift towards mainstream acceptance and adoption. The rapid growth of BlackRock’s IBIT fund and the substantial holdings by key players in the industry indicate a positive outlook for the future of digital assets in traditional investment portfolios.
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