Wisconsin Pension Fund Fully Exits $350M Bitcoin ETF Investment

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Greetings Readers,

Welcome to this edition of our crypto investment newsletter, where we dive into key institutional moves and major developments in the digital asset space. Stay informed, stay ahead.

Strategic Exit Amid Price Decline

In a surprising strategic move, the State of Wisconsin Investment Board (SWIB) has completely divested its holdings in the iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF launched by BlackRock. This exit, which took place during Q1 2025, came amid a roughly 12% decline in Bitcoin’s price over the same period.

$350M Position Liquidated

At the close of 2024, SWIB had amassed more than 6 million shares in IBIT, translating to an estimated valuation of $350 million. The latest 13F filing shows this entire position has now been liquidated. This marks a sharp reversal from just months earlier, when the board significantly boosted its exposure to Bitcoin, increasing its IBIT stake from approximately 2.9 million shares to over 6 million.

Shift Toward Indirect Exposure

Interestingly, while SWIB stepped back from direct Bitcoin exposure, it expanded its indirect position by purchasing 26,571 shares of MicroStrategy (MSTR) in Q1 2025, an allocation worth around $10.5 million. MicroStrategy, under the leadership of noted Bitcoin advocate Michael Saylor, is known for holding substantial reserves of Bitcoin on its balance sheet.

Background on SWIB

SWIB, which has been managing public funds since 1951, oversees over $160 billion in assets for Wisconsin public employees through the Wisconsin Retirement System and related funds.

Contrasting Move by Abu Dhabi’s Sovereign Fund

In contrast to SWIB’s retreat, international interest in Bitcoin ETFs appears to be growing. Mubadala Investment Company, Abu Dhabi’s sovereign wealth fund, increased its holdings in IBIT during the same quarter, adding over 490,000 shares valued at roughly $29 million.

Bitcoin Rally Sparks Renewed Optimism

Meanwhile, Bitcoin has rebounded strongly, climbing approximately 27% since the end of Q1 and recently breaking above the $100,000 threshold again. The renewed rally has reignited investor enthusiasm, with many anticipating further gains ahead.

Is Bitcoin Still a Millionaire-Maker Investment?

Easy Access Through ETFs

As Bitcoin returns to six-figure territory, speculation about its long-term potential has intensified. One of the simplest ways for mainstream investors to gain exposure to Bitcoin without the complexities of managing digital wallets is through spot ETFs like the iShares Bitcoin Trust (IBIT), which seeks to mirror Bitcoin’s price performance closely. The fund carries a competitive expense ratio of 0.25% and has returned over 60% in the past year.

Can a $1,000 Investment Become $1 Million?

But can an investment in a Bitcoin ETF turn a modest $1,000 into $1 million? Mathematically, this would require a 1,000x return—meaning Bitcoin itself would need to skyrocket from around $100,000 to $100 million.

Though this scenario is extreme, Bitcoin proponents like Michael Saylor believe such growth is possible. His bullish projections suggest Bitcoin could reach $13 million per coin by 2045, with a best-case outlook as high as $49 million.

While such projections are speculative, they do reflect the level of optimism some long-term holders maintain about Bitcoin's potential as a digital store of value.

Tempered Optimism Amid Volatility

High Risk, High Reward

Despite the recent price surge, it’s crucial for investors to remain cautious. Bitcoin remains highly volatile—fluctuating from lows near $54,000 to highs above $106,000 within the past year. This level of unpredictability, while appealing to some, underscores the risks inherent in crypto investing.

A Conservative Approach

Spot Bitcoin ETFs like IBIT offer convenience and accessibility, but they do not insulate investors from the asset’s inherent volatility. For those considering a position, a conservative allocation—ideally less than 5% of a diversified portfolio—is advisable.

Bitcoin’s future is still unfolding, and while the possibility of significant returns exists, so too does the potential for substantial losses. A measured, informed approach remains key for those navigating this dynamic market.

Thank You for Reading

We appreciate your time and interest in our analysis. Stay tuned for more insights and updates on major movements within the crypto and digital asset space.

Disclaimer

The content in this newsletter is for informational purposes only and should not be construed as financial, investment, or legal advice. Cryptocurrency investments are inherently risky and volatile. Always conduct your own research or consult a qualified financial advisor before making investment decisions.

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