- SWIB increased its BlackRock Bitcoin ETF (IBIT) holdings to $99M, reflecting a shift towards direct Bitcoin exposure.
- SWIB exited its Grayscale Bitcoin Trust (GBTC) position, highlighting a strategic move toward Bitcoin spot ETFs.
- BlackRock’s IBIT now ranks third among global Bitcoin holders, with predictions of it becoming the largest Bitcoin fund by next year.
According to a recent SEC filing, the State of Wisconsin Investment Board (SWIB) has increased its investment in the BlackRock Bitcoin ETF (IBIT) significantly. This increase demonstrates a significant change in SWIB’s investment approach and is consistent with an institutional investor trend more broadly. The number of IBIT shares held by the board has increased to 2,898,051 from 2,450,400 as of May. The estimated value of this new role is $99 million.
Strategic Shift from Grayscale to BlackRock
Consequently, SWIB has fully sold off its shares in the Grayscale Bitcoin Trust (GBTC). As of May, the board owned 1,013,000 shares of GBTC.
Therefore, this action indicates a calculated reallocation of resources in line with investors’ increasing desire for spot ETFs that offer direct exposure to Bitcoin. The choice highlights a change in institutional strategies away from financial derivatives and toward products that provide direct access to Bitcoin.
Institutional Trend Towards Bitcoin ETFs
Furthermore, SWIB’s growing stake in BlackRock’s Bitcoin ETF is consistent with a broader pattern observed among institutional investors. Large financial institutions and state pension funds are becoming more and more interested in Bitcoin spot ETFs. This week’s first two days have seen inflows of almost $60 million into Bitcoin spot ETFs, with BlackRock leading the way with $34.6 million. This suggests that institutional investors have a strong appetite for Bitcoin.
Predictions indicate that BlackRock’s IBIT, which is now ranked third among Bitcoin holders worldwide, may overtake Satoshi Nakamoto’s 1.1 million BTC holdings in less than a year. Eric Balchunas, an ETF strategist for Bloomberg, believes that IBIT may surpass all other Bitcoin funds by the end of the following year. According to their most recent Q2 portfolio disclosure, Goldman Sachs holds 1.5 million FBTC shares and 7 million IBIT shares, reflecting this increasing institutional interest.
Bitcoin’s price has encountered difficulties despite these powerful institutional endorsements, especially in light of recent US CPI inflation data. Nonetheless, the rise in Bitcoin ETF investments indicates a notable change in the way institutional investors are incorporating Bitcoin into their holdings. This development represents a turning point in the development of the bitcoin investment market.
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