Interest in Bitcoin exchange-traded funds (ETFs) continues to rise, despite recent volatility in the cryptocurrency market.
In its latest 13F filing with the U.S. Securities and Exchange Commission (SEC), the State of Wisconsin Investment Board (SWIB) highlighted this trend, revealing an increase in its holdings in BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT).
This decision to increase its investment in Bitcoin through an exchange-traded fund confirms the cryptocurrency’s current importance as a strategic investment asset for a variety of companies and institutions, including state trust funds such as SWIB. The investment in Bitcoin spot ETFs also represents a significant shift in the state’s investment strategy, which began diversifying its assets into the world of cryptocurrencies in the first quarter.
The Wisconsin Board of Investment owns nearly 3 million shares of IBIT
According to a recent SEC filing, SWIB has increased its investment in the iShares Bitcoin Trust ETF (IBIT), reaching nearly 3 million shares, equivalent to an approximate value of $99 million USD, based on IBIT’s current share price.
On the other hand, the number of shares that SWIB currently owns represents a 18% increase in the exposure it held in Bitcoin through the spot ETF, in the first quarter.
The Board's decision to increase its stake in IBIT in the second quarter was also accompanied by the complete liquidation of its holdings in the Grayscale Bitcoin Trust (GBTC), which had a significantly higher management cost compared to IBIT.
IBIT exceeds $20.600 billion in assets under management
The IBIT ETF has achieved remarkable growth, surpassing $20.600 billion in assets under management. This increase in the fund’s capitalization is a testament to the growing interest from institutional and retail investors in financial products that offer direct exposure to Bitcoin without the complications of custody and direct handling of the cryptocurrency.
IBIT’s growth can be attributed to several factors, including BlackRock’s reputation as the world’s largest asset manager and the voracious appetite of investors, who were eager for a safer and more reliable option to access the market-leading cryptocurrency. Furthermore, in the fee war that broke out prior to the launch of the Bitcoin ETFs, BlackRock waived a portion of its sponsorship fee during the first year of its fund’s operation, reducing its commission to just 0,12% over this period. All of this has further incentivized investment in this Bitcoin-listed product.
Bitcoin ETFs could surpass Satoshi Nakamoto's holdings next year
On the other hand, with the growing popularity of Bitcoin ETFs, it has been speculated that by the end of 2025, the amount of Bitcoin held by these funds could surpass the holdings of Satoshi Nakamoto, the mysterious creator of Bitcoin.
Bloomberg ETF analyst Eric Balchunas commented that IBIT is the ETF most likely to surpass Satoshi's holdings by 2025. “BlackRock alone is already #3 and is on track to be #1 by the end of next year, and will likely stay there for a long time.”, said Balchunas from his X account.
Nakamoto is estimated to hold around 1,1 million BTC, and with the continued growth of assets under management in ETFs like IBIT, this milestone could be reached in the not-too-distant future. This phenomenon highlights a shift in the dynamics of the cryptocurrency market, where institutions are taking an increasingly prominent role.
In addition to SWIB, Norway’s sovereign wealth fund NBIM also reported an increase in its exposure to Bitcoin exchange-traded funds.
As more states and government entities begin to integrate Bitcoin into their investment portfolios, the narrative around the cryptocurrency is evolving from being viewed as a speculative asset to a legitimate component of institutional investment.
