The State of Winconsin increased its stake in BlackRock bitcoin ETF while liquidating all of its GBTC share holdings during the last quarter.
As per the SEC filing, the State of Wisconsin Investment Board (SWIB) stated that they hold nearly 3 million shares of BlackRock Bitcoin ETF IBIT as of the second quarter ending on June 30. The filing shows that SWIB holds 2,898,051 shares of the iShare Bitcoin Trust with the total investment value coming closer to $99 million as per the average BTC price during the second quarter.
This shows that the State of Wisconsin Investment Board (SWIB) has raised its exposure to BTC ETFs from the previous 2.5 million shares held during the end of the March quarter. Additionally, the filing shows that SWIB has offloaded a total of 1 million shares of the Grayscale Bitcoin ETF GBTC, held during the first quarter. Banking giant Morgan Stanley also offloaded its $270 million stake in GBTC.
This massive offloading comes against the backdrop of the high management fee charged by GBTC. While the rest of the Bitcoin ETF issuers charge 0.25%, Grayscale GBTC costs ten times around 2.5%.
SWIB is an independent state agency overseeing the management of assets for the Wisconsin Retirement System, the State Investment Fund (SIF), and various other state funds.
US States Increase Exposure to Bitcoin
More and more US states are coming forward to gain exposure to Bitcoin as part of their Treasury. Last month on July 26, the State of Michigan Retirement System disclosed that it holds 110,000 shares in ARK 21Shares Bitcoin ETF (ARKB), worth a staggering $6.6 million.
While it accounts for just 0.004% of their $143.9 billion in assets under management as of December 2023, Bloomberg ETF analyst Eric Balchunas noted that “it’s a start.” Additionally, Jersey City Mayor Steven Fulop announced the city’s pension fund plans to invest in Bitcoin via ETFs.
Inflows into the spot Bitcoin ETFs have been volatile recently amid the volatility in the broader crypto market. On Wednesday, August 14, spot Bitcoin ETFs saw outflows of $81 million with Grayscale’s GBTC recording $57 million in outflows.
With big players seeking exposure to Bitcoin, it is clear that the demand for the asset class has been growing even among the traditional finance players. with clear regulations in place, TradFi players might start offering Bitcoin trading and custodial services going ahead.
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