Wisconsin Investment Board sold off its Bitcoin ETF stash

The Wisconsin Investment Board (SWIB), manager of Wisconsin’s retirement funds, fully liquidated its holdings in BlackRock’s iShares Bitcoin Trust ETF (IBIT) during the first quarter of 2025. This involved the sale of over 6 million IBIT shares, valued at approximately $355.6 million at the time of sale. This divestment marks a significant reversal for SWIB, which was among the first state investment funds to allocate to Bitcoin ETFs, purchasing $164 million worth in Q1 2024, the same quarter these products launched. The sale follows a previous quarter where SWIB reallocated its Grayscale Bitcoin Trust (GBTC) holdings into IBIT. Before the sale, Bitcoin ETFs represented roughly 0.2% of SWIB’s $166 billion portfolio.

Conversely, Abu Dhabi’s Mubadala Investment Company increased its IBIT holdings by 491,439 shares in Q1 2025, bringing its total to over 8.7 million shares, valued at around $512 million. This contrasts sharply with SWIB’s complete exit from the market.

IBIT’s performance has been strong, exceeding $45 billion in net inflows by May 14, 2025. This impressive streak, however, ended on May 13th with a zero net inflow, marking the first such day since April 9th. Despite this temporary pause, IBIT significantly outperforms other US-based Bitcoin ETFs, such as Fidelity Wise Origin Bitcoin Fund (FBTC) at $11.6 billion and ARK 21Shares Bitcoin ETF (ARK) at $2.7 billion in all-time net inflows. Data from Farside Investors illustrates the significant inflow disparity between IBIT and its competitors.

The reasons behind SWIB’s decision remain unclear. However, the contrasting actions of SWIB and Mubadala highlight the ongoing volatility and diverse investment strategies within the Bitcoin ETF market. Further analysis is needed to understand the factors influencing these significant shifts in institutional investment.