Top US Pension Fund Allocates $162 Million to Bitcoin ETFs

Top 10 US Pension Fund Invests $162 Million in Bitcoin ETFs


By Andrew Throuvalas
Updated: May 14, 2024, 15:47 EDT
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Reading Time: 1 minute


One of the largest pension funds in the United States has revealed that it has allocated $162 million to the country’s leading Bitcoin spot ETF products, which were launched earlier this year.
According to a 13F filing with the Securities and Exchange Commission (SEC), the State of Wisconsin Investment Board (SWIB) held $99 million in the iShares Bitcoin Trust (IBIT) as of March 31.
Major Pension Fund Makes Bitcoin Purchase
The SWIB also had $63 million invested in the Grayscale Bitcoin Trust (GBTC), which is BlackRock’s biggest competitor in terms of size, but charges a higher annual management fee of 1.5%.
This allocation is a significant milestone for Bitcoin’s adoption as a global store of value. Bitcoin’s most enthusiastic supporters have long hoped to see it transition from being a speculative asset for retail and hedge fund traders to becoming a treasury reserve asset for corporations and governments.
“Normally, you don’t see these large institutional investors in the 13Fs until a year or so later (when the ETF becomes more liquid),” tweeted Bloomberg ETF analyst Eric Balchuas in response to the SWIB disclosure. “Expect more, as institutions tend to follow the herd.”
The reported total value of SWIB’s securities portfolio was $37.8 billion, meaning that its Bitcoin position represents only a 0.4% allocation. As of December 31, 2023, SWIB controlled a total of $155 billion in assets, accounting for 85% of the entire Wisconsin retirement system.
Who Else Is Investing in Bitcoin?
While SWIB is the first pension fund to publicly disclose its Bitcoin holdings, efforts are underway to encourage other states to invest in the new Bitcoin ETFs as well.
Last month, Ohio state Representative Steve Demetriou introduced pro-crypto legislation that would, among other things, require the state’s retirement systems to evaluate Bitcoin ETFs.
In addition to pension funds, major banks such as Wells Fargo and JPMorgan also hold Bitcoin ETF allocations. However, experts have noted that these institutions likely own shares of the funds as authorized participants rather than for investment purposes.
“In a policy statement in January 2023, the Fed prohibited these banks from directly holding ‘crypto-assets’ on their balance sheets,” tweeted Swan Bitcoin analyst Sam Callahan. “The idea that large banks are suddenly bullish on Bitcoin ETFs is nonsensical.”
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