The State of Wisconsin Investment Board (SWIB), a trailblazer among U.S. state pension funds in the cryptocurrency realm, has divested its entire stake in a spot Bitcoin ETF. This surprising move, disclosed in a recent 13F filing, comes as the world’s largest cryptocurrency experienced a 12% dip in value during the first quarter of 2025.
A Dramatic Pivot
SWIB’s decision to sell its $350 million holding in BlackRock’s iShares Bitcoin Trust (IBIT) marks a significant shift from its previous strategy. At the end of 2024, SWIB had more than 6 million shares in IBIT, having more than doubled its holdings in a bold bet on Bitcoin’s potential. But the winds of the market shifted early this year, prompting the board to reassess its position.
“While the initial enthusiasm for Bitcoin was palpable, market volatility has led us to reconsider our exposure,” commented an unnamed source familiar with the board’s strategy. The sell-off underscores the unpredictable nature of cryptocurrency investments, even for seasoned players like SWIB. This move comes as Grayscale’s Bitcoin Trust continues to dominate ETF revenue in 2025, highlighting the varied approaches within the market.
Contrasting Strategies
This move stands in stark contrast to other institutional investors, such as Mubadala Investments, Abu Dhabi’s sovereign wealth fund, which took a bullish stance by increasing its IBIT holdings by over 490,000 shares, valued at approximately $29 million. This divergence in strategies highlights the varied risk appetites and market outlooks among institutional investors.
Bitcoin’s value has indeed rebounded by 27% since the end of the first quarter, now trading near $103,750. Such volatility is not unusual for the crypto market, but it remains a critical factor for institutional investors weighing the risks and rewards. As detailed in our recent coverage of Bitcoin’s price surge, institutional interest and market optimism continue to drive significant price movements.
Market Context and Implications
Established in 1951, SWIB manages over $160 billion in assets, primarily for Wisconsin state employees through the Wisconsin Retirement System. Its foray into cryptocurrency was initially seen as a pioneering move, potentially paving the way for other state funds. The exit, however, raises questions about the long-term viability of crypto investments within traditional pension fund portfolios.
Interestingly, despite divesting from the Bitcoin ETF, SWIB has not entirely turned its back on the crypto sector. The board has added indirect exposure via investments in MicroStrategy (MSTR), acquiring 26,571 shares worth approximately $10.5 million. MicroStrategy, known for its significant Bitcoin holdings, offers another avenue for engaging with the crypto market, albeit indirectly.
Looking Forward
As SWIB recalibrates its strategy, the broader market continues to watch closely. Will other institutional investors follow Wisconsin’s lead, or will they double down on their crypto investments amid Bitcoin’s recent price surge? The contrasting approaches underscore the ongoing debate about cryptocurrencies’ role in diversified portfolios.
The future remains uncertain—will Bitcoin maintain its upward trajectory, or are more bumps in the road ahead? As the crypto market matures, the decisions made by heavyweight institutional investors like SWIB will undoubtedly influence broader market sentiment. For now, investors and analysts alike are left pondering the implications of Wisconsin’s bold move.
Source
This article is based on: Wisconsin Sells Entire $350M Spot Bitcoin ETF Stake
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
