As revealed in a May 14 quarterly filing with the US Securities and Exchange Commission, the State of Wisconsin Investment Board has become the first public institution in the United States to invest in cryptocurrency. , invested $187.1 million in Bitcoin and related cryptocurrency companies.
SWIB manages assets of the Wisconsin Retirement System, state investment funds and other funds, with total assets in excess of $156 billion as of the end of 2023. Cryptocurrency investments make up a small portion, about one-tenth of total assets. Total assets.
Bob Bukowski, managing partner at Alpha Investing Consulting, described the investment as a speculative bet. He explained, “If the value of Bitcoin doubles or triples, you can say you invested.” When it gets to zero, the loss is minimal.”
The largest portion of SWIB’s cryptocurrency investments is $99.1 million in iShares Bitcoin Trust (NYSEARCA:IBIT).) is an exchange-traded fund managed by BlackRock (NYSE:BLK) that was launched in January after SEC approval. The fund closed at $38.98 on Tuesday, up about 46% from its January launch.
In addition to iShares Bitcoin Trust, SWIB invested $63.6 million in Grayscale Bitcoin Trust. $24.5 million from Coinbase (NASDAQ:COIN), a leading cryptocurrency exchange platform.
Bloomberg senior ETF analyst Eric Balchunas said on Twitter that other public institutions could follow SWIB’s lead, saying: “Institutions tend to move in packs, so expect more.”
When asked for comment, SWIB said it “does not comment on specific investments.”
SEC Chairman Gary Gensler emphasized caution, noting that Bitcoin is a speculative asset often associated with illegal activity. “Investors should be cautious about the numerous risks associated with Bitcoin and products whose value is tied to cryptocurrencies,” he said.
“The SEC now has the authority to monitor how these investments are managed and traded,” Bukowski said, adding that the SEC’s involvement is critical to protecting investors.
Bitcoin has traded between $66,685 and $70,314 per coin over the past five days, closing at $68,305 on Wednesday.
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