The State of Wisconsin Investment Board has boosted its Bitcoin investments to about $321 million, as reported in a February 14 filing with the SEC. This marks an increase from previous holdings of $164 million. The pension fund now exclusively invests in BlackRock’s iShares Bitcoin Trust, having sold off shares in Grayscale’s Bitcoin Trust. This move is part of a growing trend among pension funds looking to protect their assets from inflation and diversify their portfolios. Despite Bitcoin’s volatility, pension funds are drawn to its long-term appreciation potential. Recently, other state pension funds have also started investing in Bitcoin, reflecting a broader acceptance of cryptocurrency in institutional finance.
The State of Wisconsin Investment Board has recently ramped up its investment in Bitcoin, now holding approximately $321 million in the cryptocurrency. This information comes from a February 14 filing with the US Securities and Exchange Commission. Earlier, the pension fund held around $164 million in Bitcoin through exchange-traded funds in May 2024.
Previously, the board owned around 2.4 million shares of BlackRock’s iShares Bitcoin Trust, valued at $100 million, along with 1 million shares of Grayscale’s Bitcoin Trust worth $64 million. The latest filing reveals that Wisconsin’s pension fund has shifted its entire Bitcoin investment into the iShares fund, completely divesting from Grayscale.
This increased allocation underscores a broader trend among pension funds aiming to hedge against inflation and diversify their portfolios. Despite Bitcoin’s well-known volatility, these funds can afford to take a long-term perspective, focusing on price appreciation over time. Attorney Allie Itami from Lathrop GPM pointed out that state pension funds often face fewer restrictions compared to privately managed funds under the Employee Retirement Income Security Act.
Following Wisconsin’s recent BTC holdings disclosure, several other state pension funds have also reported their Bitcoin investments. The State of Michigan Retirement System, for instance, disclosed a modest $6.6 million in BTC exposure in July 2024. Likewise, Florida’s chief financial officer has urged local officials to consider allocating part of the state pension funds toward Bitcoin. More developments are expected, including North Carolina exploring investments in digital assets, indicating a growing inclusion of cryptocurrency in state pension strategies.
Tags: Wisconsin Investment Board, Bitcoin investment, cryptocurrency, pension funds, inflation hedge, ETFs.
What is the State of Wisconsin Investment Board’s investment in Bitcoin?
The State of Wisconsin Investment Board has invested over $321 million in Bitcoin. This shows their commitment to exploring digital currencies as part of their investment strategy.
Why did the State of Wisconsin Investment Board choose to invest in Bitcoin?
The board sees Bitcoin as a growing asset class with potential for high returns. They believe it can diversify their investment portfolio and help manage risk.
How does this investment affect taxpayers?
This investment is managed separately from taxpayer funds. The board aims to make wise investment choices to benefit the overall state fund, which might indirectly support public services.
What are the risks of investing in Bitcoin?
Bitcoin can be very volatile, meaning its price can go up and down a lot. The board is aware of these risks and takes them into account when making investment decisions.
What does this mean for other investors?
Wisconsin’s investment in Bitcoin may encourage other state funds and institutional investors to consider digital assets. It highlights the growing acceptance of cryptocurrency in mainstream finance.
