Bitcoin
More US states are expected to follow Wisconsin’s lead by investing in spot Bitcoin ETFs
Marquette University professor emeritus David Krause told PBS Wisconsin in may 31st What other US states could follow Wisconsin in investing in spot Bitcoin ETFs.
Krause called Bitcoin a “good investment” for state pension funds, emphasizing its role in diversification, its high potential for positive returns and its use as a hedge against inflation. He added that Bitcoin’s ability to remove volatility from government actions is under-recognized.
Despite his optimism, Krause clarified that only the Wisconsin State Investment Board (SWIB) and a few other state funds can afford to weather the cycles and volatility of the crypto market.
He said:
“I don’t expect those who are underfunded to have the luxury of [invest] because this is a long play.”
Krauss did not predict which states are most likely to invest. However, Equable data indicates that seven state pension funds had a funded ratio greater than or equal to Wisconsin’s 95% in 2023. Three of the seven funds had overfunded ratios above 100%.
On the other hand, Illinois had the least funded state pension board, with a funding rate of 51%.
Wisconsin could invest more
Krause also commented on the possibility of growth at Wisconsin’s position. He called SWIB’s initial investment a “trial,” stating:
“I think it’s just an entry point. I think they are testing to see the public’s reaction whether or not there is resistance to taking this on.”
Krause highlighted the rapid nature of Wisconsin investing, stating that the investment industry was “surprised” that a pension fund invested in Bitcoin ETFs in cash so soon after the products launched, rather than years after launch. , as expected.
SWIB holds over $160 million in spot Bitcoin ETF shares, consisting of BlackRock I BITE It is Shades of gray GBTC. Krause estimated the investment represents 0.1% of SWIB’s total $180 billion value, although the latest filing reports the fund has a lower value of $37.9 billion.
According to Fintel data, SWIB is currently among the top Bitcoin ETF investors. As of June 3, it had the sixth highest IBIT and 13th highest GBTC.
The company disclosed for the first time its investments in May 14.