Wisconsin Investment Board Sells $355.6M in Bitcoin ETFs

The State of Wisconsin Investment Board (SWIB), which oversees the state’s retirement funds, has sold off its entire position in BlackRock’s iShares Bitcoin Trust ETF (IBIT) during the first quarter, according to filings. The board liquidated all 6,060,351 IBIT shares it reported holding from the previous quarter, as indicated in its 13F filing to the US Securities and Exchange Commission on May 15.

The more than 6 million IBIT shares are worth around $355.6 million at current prices. This move comes only a quarter after SWIB reported additional purchases of IBIT shares in Q4, while reallocating all 1 million shares held in the Grayscale Bitcoin Trust (GBTC) to IBIT. SWIB reported managing more than $166 billion worth of assets at the end of 2024, meaning the Bitcoin ETFs represented around 0.2% of SWIB’s entire portfolio before it sold them off.

SWIB was one of the first state investment funds to provide Bitcoin exposure to US retirees when it bought $164 million worth of Bitcoin ETFs in Q1 2024 — the same quarter the Bitcoin products launched. The mass sell-off comes only a quarter after SWIB reported additional purchases of IBIT shares in Q4, while reallocating all 1 million shares held in the Grayscale Bitcoin Trust (GBTC) to IBIT.

Meanwhile, Abu Dhabi sovereign wealth fund Mubadala snapped up another 491,439 shares of IBIT in Q1, according to its latest 13F filing. Its purchases brought Mubadala’s total IBIT shares to 8,726,972 as of March 31, worth around $512 million at current prices.

IBIT’s net inflows surpassed the $45 billion mark on May 14 after recording a net inflow of $232.9 million. IBIT’s impressive 20-day streak of net inflows came to an end the day before — May 13 — when it registered a “0” inflow on the day. The BlackRock-issued Bitcoin product still hasn’t seen an outflow since April 9 — more than five weeks ago.

The Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARK) trail IBIT in all-time net inflows at $11.6 billion and $2.7 billion, respectively.

This strategic shift underscores the board's commitment to prudent investment management and its responsibility to safeguard the financial future of Wisconsin's retirees. The decision to liquidate the Bitcoin ETF holdings was made after careful consideration of market conditions and the potential risks associated with cryptocurrency investments. The board aims to ensure the stability and security of the retirement funds, prioritizing long-term financial health over short-term market fluctuations.