Wisconsin State Investment Board Divests $321 Million in BlackRock's Bitcoin Exchange-Traded Fund Securities
Going Cold on BlackRock: SWIB Dumps Its Bitcoin ETF Shares
Hold onto your cryptocurrency hats! The State of Wisconsin Investment Board (SWIB) has dumped over $321 million worth of shares in BlackRock's highly-coveted iShares Bitcoin Trust (IBIT) – and it’s left investors scratching their heads!
Just a year ago, SWIB was among the early adopters of this Bitcoin spot ETF, setting a trend for other U.S. states to follow suit. But what prompted this sudden change?
Sayonara IBIT - Hello Diversification!
When the U.S. Securities and Exchange Commission (SEC) green-lit the launch of spot Bitcoin ETFs in January 2024, SWIB went all in with a cool $99.2 million on IBIT. They also laid down some dough on Grayscale's Bitcoin Trust (GBTC), according to their Q1 2024 Form 13F filing.[1]
At the time, the news sparked quite the commotion, with various states pondering similar moves. Even the State of New Hampshire, with its new strategic Bitcoin Reserve, briefly flirted with the idea of joining SWIB's party.
Despite offloading its GBTC holdings by Q2 2024, SWIB held onto IBIT shares like a charm, amassing nearly 2.9 million shares – close to $107 million value at the time. They also snatched up shares from other crypto players, like Coinbase, Marathon Digital, and fintech bigwigs Robinhood and Block Inc.[2]
The latest Q1 2025 Form 13F report reveals that SWIB still clings to $18.8 million worth of Coinbase shares and over $1 million in Marathon shares, but has let go of IBIT.[3]
IBIT - The Spot Bitcoin ETF Heavyweight
While SWIB has thrown in the towel on IBIT, other financial behemoths are diving headfirst into the pool. One such whale is Goldman Sachs, which has been buying IBIT shares left, right, and center this year![4][5]
The analytical whizkids at MacroScope spilled the beans last week that Goldman Sachs has become the largest known IBIT holder internationally, with a massive 30.8 million shares worth a cool $1.4 billion.[6]
All these consistent buys by Goldman Sachs have cemented IBIT's position as the largest and boldest spot Bitcoin ETF in town, with a hefty sum under management.[7]
In fact, IBIT has just wrapped up a 20-day appetizer of funds pouring in, with at least $5 billion rolling into the fund.
Bonus Round: The Core Factors Behind SWIB's Divestiture
Although the specific reasons behind SWIB's decision to bail on IBIT are shrouded in mystery, experts point to various probable factors, including:
- Bite-size Volatility: Bitcoin's rollercoaster ride of price ups and downs might have led SWIB to reassess their investment strategy as a risk management move.[8]
- Goals Galore and Diversification: SWIB could have fine-tuned their portfolio to better align with their investment objectives or to ensure a healthier mix of assets, cushioning potential risks.[9]
- Performance and Playing the Long Game: Despite IBIT soaring 122.5% in 2024, SWIB might have decided to pull the plug due to changes in market conditions or strategic shifts.[1][2][3]
- Regulatory Hairpins and Economic Waves: Although not explicitly stated, potential regulatory tweaks or market shifts could have influenced SWIB's decision making.[10]
As always, these factors are speculative, and without a public statement from SWIB, it’s all up in the air!
- Despite SWIB's recent decision to divest from BlackRock's iShares Bitcoin Trust (IBIT), other financial giants like Goldman Sachs continue to invest heavily in this blockchain-based crypto ETF.
- SWIB's move to sell IBIT shares could be attributed to factors such as Bitcoin's volatile price swings, a need for diversification, changes in market conditions, or potential regulatory changes in the finance industry.
- The exchange-traded fund (ETF) industry is witnessing a significant shift, with technology-driven investments like IBIT becoming increasingly popular among investors seeking exposure to the Bitcoin market.
