State Pension Fund Was Among First to Embrace Bitcoin Exposure for Retirees
The State of Wisconsin Investment Board (SWIB) has fully liquidated its position in BlackRock’s iShares Bitcoin Trust ETF (IBIT), according to a May 15 filing with the U.S. Securities and Exchange Commission (SEC).
The filing revealed that SWIB no longer holds any spot Bitcoin ETFs, selling off all 6,060,351 shares of IBIT, previously worth an estimated $355.6 million at current prices.
The move marks a sharp reversal after Wisconsin made headlines in early 2024 as one of the first state-managed pension funds to gain direct Bitcoin exposure via U.S.-listed ETFs.
From Early Buyer to Full Exit in One Quarter
In Q1 2024, SWIB initially purchased $164 million worth of Bitcoin ETFs, shortly after the January debut of spot Bitcoin products in the U.S. The fund later doubled down, reallocating its 1 million Grayscale Bitcoin Trust (GBTC) shares into IBIT and expanding its IBIT holdings.
But as of the end of Q1 2025, the entire position has been liquidated.
SWIB, which manages more than $166 billion in assets, had allocated around 0.2% of its portfolio to Bitcoin ETFs prior to the exit.
The reasons for the sell-off are not publicly stated in the filing and could range from profit-taking, portfolio rebalancing, or a strategic shift in exposure to crypto-related assets.
Global Institutions Take the Opposite Approach
While SWIB exited the Bitcoin ETF space, Abu Dhabi’s sovereign wealth fund, Mubadala, continued to ramp up its exposure.
Mubadala added 491,439 IBIT shares in Q1, bringing its total holdings to 8,726,972 shares — now worth over $512 million.
This suggests divergent strategies among institutional investors globally, with U.S. pension funds possibly more conservative, while sovereign wealth funds pursue long-term exposure to Bitcoin.
IBIT’s Growth Continues Uninterrupted
Despite SWIB’s exit, IBIT continues to dominate the spot Bitcoin ETF landscape:
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Net inflows surpassed $45 billion on May 14, according to Farside Investors
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No outflows recorded since April 9, maintaining more than five weeks of uninterrupted inflows
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20-day inflow streak ended only on May 13 with a neutral zero-inflow day
Trailing IBIT in net inflows are:
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Fidelity Wise Origin Bitcoin Fund (FBTC): $11.6 billion
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ARK 21Shares Bitcoin ETF (ARK): $2.7 billion
Final Thoughts: Temporary Retreat or Strategic Reallocation?
The decision by Wisconsin’s SWIB to exit its $355 million Bitcoin ETF stake contrasts sharply with growing global institutional interest in Bitcoin as an asset class.
As market conditions evolve and spot Bitcoin ETFs continue to perform, the move may either be viewed as a missed opportunity or a prudent step back — depending on how crypto markets and ETF inflows trend through the remainder of 2025.
For now, IBIT’s momentum remains strong, even as some early adopters in the public sector reassess their crypto exposure.
