You are at: Home » Can Wisconsin Set Precedent For US States After $161 Million BTC Investment For State Pension?

Can Wisconsin Set Precedent For US States After $161 Million BTC Investment For State Pension?

Last updated on:
Fact Checker

Bitcoin Pension Fund? Wisconsin officially becomes the first US state to allocate a significant portion of its pension fund to Bitcoin (BTC). 

2024 stewards the arrival of Bitcoin pension funds? Wisconsin has officially become the first US state to allocate a significant portion of its pension fund to Bitcoin (BTC), in a move that could potentially reshape the landscape of institutional investments in cryptocurrencies going forward. 

Wisconsin’s decision involves investing approximately $161 million in BTC Exchange-Traded Funds (ETFs), marking a bold step into digital asset management by a state entity. 

According to the published US Securities and Exchange Commission (SEC) filing and a recent Quartz report, the State of Wisconsin Investment Board (SWIB) purchased 94,562 shares of BlackRock’s iShares Bitcoin Trust (IBIT), worth around $98 million, and invested in Grayscale’s spot BTC ETF, totaling around $63 million. 

Wisconsin’s decision follows the SEC’s recent approval of BTC ETFs in January 2024, allowing institutional investors to invest in Bitcoin without the complexities of direct crypto handling. 

Bitcoin Pension Funds: Implications For Institutional Investments 

SWIB’s foray into BTC could be a watershed moment for other US states contemplating similar investments. 

Wisconsin’s decision is not just a financial investment; it is also legitimizing BTC as a potential asset class. 

Bloomberg analyst Eric Balchunas suggested that this could signal the beginning of a trend where more state pension funds could turn to crypto as a viable investment option. 

Bitcoin is trading at $62,119 today, reflecting a 0.46% increase in the past 24 hours. However, crypto volatility remains a concern, especially for state institutions and public funds. 

Volatility trends were also observed when El Salvador made a substantial investment in BTC in 2021, which also faced significant value fluctuations. 

While crypto integration into traditional financial portfolios continues to gain momentum, it raises an important question about the future of investment strategies for state pension funds and the role of crypto in them. 

As digital assets continue to evolve and gain acceptance, the institutional investment landscape is likely to undergo significant changes. 

EXPLORE: Buying Bitcoin With PayPal

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Akriti Seth is a Zurich-based Business Journalist and Crypto Editor. Her passion for journalism has taken her across the globe – from thriving as an on-television correspondent to writing engaging articles, she has worked for companies like Informa UK, Bloomberg TV India, CNA Singapore. Akriti’s interest in the cryptocurrency space stems from her writing for Crypto Council for Innovation and Daily Coin. She believes that decentralisation technology has the potential to empower marginalised communities across the world. Entrepreneur Magazine, Hindustan Times, Tech Panda, Hackernoon and other publications have featured Akriti’s writings.

View all Posts by Akriti Seth

Free Bitcoin Crash Course

Learn everything you need to know about Bitcoin in just 7 days. Daily videos sent straight to your inbox.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
We hate spam as much as you do. You can unsubscribe with one click.
We hate spam as much as you do. You can unsubscribe with one click.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top