Wisconsin Pension Plan Likely to Invest Much More in Bitcoin ETF, Marquette Professor Says
Wisconsin's investment board has always been innovative," - David Kraus said. "This is a fully funded pension fund so in a way, they have the luxury of being able to invest for the long term
The addition of two spot bitcoin exchange-traded funds (ETFs) to the portfolio of Wisconsin's pension plan during the first quarter was likely just the beginning of the state's investments into crypto, according to David Krause, a professor of finance at Milwaukee-based Marquette University.
The SWIB purchased shares of BlackRock's iShares Bitcoin Trust (IBIT) and Grayscale's Bitcoin Trust (GBTC) valued at $164 million as of March 31, a filing with the U.S. Securities and Exchange Commission revealed in May.
The news surprised the industry as big institutions, specifically pensions, do not typically invest in young ETFs like the spot bitcoin ETFs, but the state's investment board has been ahead of the game before, according to Krause in an interview with PBS Wisconsin.
"Wisconsin's investment board has always been innovative," he said. "This is a fully funded pension fund so in a way, they have the luxury of being able to invest for the long term. They don't need to worry as much about liquidity as, say, the pension fund for the state of Illinois, which is only funded at 50% of its level," he added.
As of the end of 2023, the SWIB managed roughly $156 billion in assets, according to its website, meaning its holdings in the bitcoin ETFs were a negligible roughly 0.1% of its portfolio.
Krause, however, said the investment was just a "toe in the water" and he expects the SWIB to add to that amount and for other pensions to eventually follow suit.
