ETFs
Wisconsin Pension Fund Launches Bitcoin ETFs and Potential Crypto Expansion
Wisconsin Pension Fund Launches Bitcoin ETFs and Potential Crypto Expansion
Wisconsin’s pension fund made headlines in the first quarter by integrating two Bitcoin (BTC) exchange-traded funds (ETFs) in its portfolio. This addition, valued at $164 million as of March 31, marks a significant milestone for institutional crypto investments. The Wisconsin State Investment Board (SWIB) purchased shares of BlackRock’s iShares Bitcoin Trust (IBIT) and Grayscale’s Bitcoin Trust (GBTC), a filing with the U.S. Securities and Exchange Commission revealed United in May.
The move raised eyebrows across the industry, given that large institutions, particularly pension funds, generally shy away from nascent ETFs like those focused on spot Bitcoin. However, according to David Krause, a finance professor at Marquette University in Milwaukee, this is likely just the beginning of Wisconsin’s foray into cryptocurrencies. Krause note in an interview with PBS Wisconsin, SWIB has a history of innovative investments.
“The Wisconsin Investment Council has always been ahead of the curve,” Krause said. “As a fully funded pension fund, they have the luxury of investing with a long-term perspective without the same liquidity issues that plague underfunded pensions, like Illinois’, which is only funded ‘at 50%.’
At the end of 2023, SWIB managed approximately $156 billion in assets, making its Bitcoin ETF holdings a modest 0.1% of its total portfolio. Despite the low percentage, Krause believes this initial investment is a strategic measure to gauge public reaction and market performance. He predicts that SWIB will increase its Bitcoin holdings over time and expects other pension funds to follow suit.