The Wisconsin State Investment Board (SWIB), a pioneering U.S. state pension fund in adopting spot bitcoin exchange-traded funds (ETFs), completely divested its holdings in the first quarter of 2025. This decision followed a roughly 12% decline in Bitcoin’s price. SWIB’s recent 13F filing reveals the complete liquidation of its position, which comprised over 6 million shares in BlackRock’s iShares Bitcoin Trust (IBIT), valued at approximately $350 million at the end of 2024.
This move marks a significant shift from SWIB’s strategy just months prior. In late 2024, the board substantially increased its Bitcoin exposure, more than doubling its IBIT holdings from roughly 2.9 million to over 6 million shares. This aggressive approach positioned SWIB as an early adopter of the newly approved crypto investment vehicles.
However, the first quarter of 2025 saw a reversal of this strategy, with the complete sale of its IBIT holdings. Interestingly, while reducing its direct Bitcoin exposure, SWIB simultaneously increased its indirect exposure through investments in MicroStrategy (MSTR). The board added 26,571 MSTR shares during the quarter, representing a value of around $10.5 million.
This contrasts sharply with the actions of other major investors. Mubadala Investments, Abu Dhabi’s sovereign wealth fund, demonstrated a contrasting approach, expanding its stake in BlackRock’s IBIT by over 490,000 shares, valued at approximately $29 million during the same period.
SWIB, established in 1951, manages over $160 billion in assets for Wisconsin state employees through the Wisconsin Retirement System and other funds. Its decision to exit its Bitcoin holdings entirely, despite the subsequent 27% price increase in Bitcoin to near $103,750, presents a noteworthy case study in the volatility and risk management considerations within the institutional adoption of cryptocurrencies. The contrasting actions of SWIB and Mubadala highlight the diverse approaches and risk tolerances among major investors navigating the evolving cryptocurrency market.
