More US states expected to follow Wisconsin’s lead by investing in spot Bitcoin ETFs More US states expected to follow Wisconsin’s lead by investing in spot Bitcoin ETFs
The State of Wisconsin Investment Board (SWIB) invested $160 million in spot Bitcoin ETFs during the first quarter.
2 min read
Updated: Jun. 4, 2024 at 12:19 am UTC
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Marquette University professor emeritus David Krause told PBS Wisconsin on May 31 that other US states could follow Wisconsin in investing in spot Bitcoin ETFs.
Krause called Bitcoin a “good investment” for state pension funds, emphasizing its role in diversification, its high potential upside returns, and its use as a hedge against inflation. He added that Bitcoin’s ability to remove the volatility of government actions is underrecognized.
Despite his optimism, Krause clarified that only the State of Wisconsin Investment Board (SWIB) and some other state funds can afford to withstand crypto market cycles and volatility.
He said:
“I donโt expect those that are underfunded can afford to [invest] because this is a long play.”
Krauss did not predict which states are most likely to invest. However, data from Equable indicates that seven state pension funds had a funding ratio greater than or equal to Wisconsin’s 95% in 2023. Three of the seven funds had overfunded ratios above 100%.
Conversely, Illinois had the least funded state pension board, with a 51% funded ratio.
Wisconsin could invest more
Krause also commented on the possibility that Wisconsin’s position will grow.ย He called SWIB’s initial investment a “trial run,” stating:
“I think itโs just an entry point. I think theyโre testing to see the reaction of the public to whether or not thereโs resistance to owning this.”
Krause highlighted the rapid nature of Wisconsin’s investment by stating that the investment industry was “amazed” that a pension fund invested in spot Bitcoin ETFs so soon after the products launched, as opposed to years after launch as expected.
SWIB holds over $160 million in spot Bitcoin ETF shares, consisting of BlackRock’s IBIT and Grayscale’s GBTC. Krause estimated the investment makes up 0.1% of SWIB’s $180 billion total value, though the latest filing reports the fund as having a lower $37.9 billion value.
According to Fintel data, SWIB is currently among the top Bitcoin ETF investors. As of June 3, it had the sixth-largest IBIT and 13th-largest GBTC positions.
The company first disclosed its investments on May 14.
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Author 
Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
Editor Editor 
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
The BlackRock Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT), is an investment fund that provides regulated exposure to Bitcoin for investors.
The Grayscale Bitcoin Trust (GBTC) is a digital currency investment product that provides investors with access to Bitcoin through traditional investment channels.
