The State of Wisconsin Investment Board (SWIB), which made headlines earlier this year for embracing Bitcoin exposure through spot ETFs, has made a dramatic reversal. According to new SEC filings released on May 15, the state-managed retirement fund has completely liquidated its position in BlackRock’s iShares Bitcoin Trust (IBIT).
Just a quarter ago, SWIB had taken a bold step by investing heavily in spot Bitcoin ETFs, becoming one of the first U.S. state retirement systems to dip its toes into digital assets. At the time, it held more than 6 million shares of IBIT — roughly $355.6 million based on recent prices. That investment had represented approximately 0.2% of SWIB’s total portfolio, which topped $166 billion at the close of 2024.
The move sparked excitement among crypto enthusiasts and institutional investors alike, many of whom viewed it as a potential turning point in the mainstream adoption of Bitcoin as a legitimate asset class for pension funds. But now, in a sudden and somewhat surprising turn, all of those shares are gone — with no remaining spot Bitcoin ETF positions reported in the latest 13F filing.
To put this in context, SWIB had only recently moved more aggressively into the Bitcoin ETF space. In Q4 2023, it not only added IBIT to its holdings but also fully reallocated its previous 1 million shares of Grayscale’s GBTC into BlackRock’s offering. The liquidation of those positions in such a short time frame raises eyebrows and questions about the fund’s strategy and long-term view on digital assets.
While Wisconsin was stepping back, others are still doubling down. Notably, Abu Dhabi’s sovereign wealth fund, Mubadala, added nearly half a million IBIT shares during the first quarter, bringing its total holdings to over 8.7 million shares — now worth approximately $512 million. This makes Mubadala one of the larger institutional holders of IBIT, and it signals confidence in the product despite the volatility of the crypto market.
IBIT itself has been on an impressive run. Data from Farside Investors shows that the ETF recently surpassed $45 billion in net inflows, with a single-day net addition of $232.9 million on May 14. Remarkably, IBIT hasn’t recorded a single outflow since April 9, enjoying a rare level of consistency for a crypto-related asset.
Even though it briefly hit a “zero inflow” day on May 13 — breaking a 20-day streak — its dominance among spot Bitcoin ETFs remains clear. Trailing behind are Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $11.6 billion in net inflows, and the ARK 21Shares Bitcoin ETF (ARK) with $2.7 billion.
Whether Wisconsin’s sell-off was prompted by profit-taking, risk management concerns, or a change in strategy is unclear. But it does serve as a reminder that institutional sentiment toward crypto remains fluid. Some, like Mubadala, are forging ahead. Others, like SWIB, are playing it safe — at least for now.
Regardless, the broader trend shows that Bitcoin is steadily becoming a fixture in the world of traditional finance, even if the journey includes some sudden exits along the way.
