Wisconsin Investment Board Exits $335.9M Bitcoin ETF Amid Tariff Uncertainty

The State of Wisconsin Investment Board (SWIB) has made a significant move by liquidating its entire stake in BlackRock’s iShares Bitcoin Trust (IBIT) during the first quarter of the year. This decision comes amidst growing uncertainty surrounding tariff policies, which have been a focal point of economic discussions. The board had previously held over 6 million shares in BlackRock's BTC ETF, and this sale marks a complete exit from the investment, amounting to approximately $335.9 million. The divestment follows an earlier move where the board sold its $63.7 million holding in the Grayscale Bitcoin Trust (GBTC).

The timing of this sale is noteworthy, as it coincides with a period of heightened tariff uncertainty. The Trump administration's tariff policies have been a subject of intense debate and speculation, with potential impacts on various sectors of the economy. This uncertainty may have influenced the investment board's decision to exit its Bitcoin ETF holdings, as investors often seek to mitigate risks during times of economic instability. The filing’s deadline, March 31, came just two days before President Trump’s ‘Liberation Day’ on April 2, 2025, when the U.S. imposed sweeping tariffs affecting almost all its major trading partners.

The sale of the Bitcoin ETF stake by the State of Wisconsin Investment Board highlights the cautious approach that some institutional investors are taking towards cryptocurrencies. While Bitcoin has seen significant price fluctuations and has drawn attention from traditional investors, the regulatory and economic landscape remains uncertain. The board's decision to liquidate its holdings suggests a prudent strategy aimed at managing risk and navigating the complexities of the current economic environment.

This move by the State of Wisconsin Investment Board is part of a broader trend where institutional investors are reassessing their exposure to cryptocurrencies. The launch of spot Bitcoin ETFs has opened up new avenues for traditional investors to gain exposure to the digital asset class. However, the regulatory framework and potential impacts of tariff policies continue to be areas of concern. As the economic landscape evolves, institutional investors are likely to continue monitoring these factors and adjusting their portfolios accordingly. Notably, Mubadala Investment Company, one of Abu Dhabi’s sovereign wealth funds, boosted its BlackRock Bitcoin ETF holdings, signaling sustained institutional interest in crypto-related assets despite recent market volatility. In its 13F filing with the SEC on Thursday, Mubadala Investment Company revealed that it had added 491,439 shares of BlackRock’s IBIT during Q1, currently worth roughly $29 million. The BTC ETF purchase in Q1 pushed its total IBIT holdings to 8,726,972 as of March 31 from 8,235,533 at the end of December.