Diverging Investment Strategies: Wisconsin Exits While Abu Dhabi Increases Bitcoin ETF Stakes
By: Isha Das
In a significant strategic shift, the State of Wisconsin Investment Board (SWIB) has decided to liquidate its holdings in BlackRock’s iShares Bitcoin Trust ETF (IBIT), a move indicating a reassessment of its investment strategy. Wisconsin, known for being an early adopter in offering Bitcoin exposure to its retirees, previously held over 6 million shares in this exchange-traded fund (ETF), valued at approximately $355.6 million. The disclosure was made in their latest 13F filing with the US Securities and Exchange Commission, which revealed that all 6,060,351 IBIT shares were sold during the first quarter of 2025.
The move stands in contrast to the strategic decisions made by other institutional investors, especially during a period of heightened volatility in the crypto market. The sale seems to coincide with sweeping U.S. tariffs that have caused a notable downturn in cryptocurrency prices, suggesting that SWIB’s decision might be influenced by broader economic concerns as much as by crypto market dynamics. The liquidation marks a stark contrast to their previous strategy where, in the fourth quarter of 2024, they significantly ramped up their holdings to replace those of Grayscale's Bitcoin Trust.
Meanwhile, on the global stage, the Abu Dhabi sovereign wealth fund Mubadala has taken an opposing route by increasing its Bitcoin ETF exposure. In its recent filings, Mubadala reported adding 491,000 shares to its IBIT holdings in the first quarter, increasing their total stake to 8,726,972 shares, valued at approximately $512 million currently. This substantial acquisition reflects a 6% rise from the previous quarter, underscoring their commitment to Bitcoin amid a volatile market. Mubadala's continued increase in Bitcoin-related investments highlights its long-term confidence in the cryptocurrency's potential, as part of a larger asset management portfolio of $302 billion.
The divergent strategies exhibited by SWIB and Mubadala illustrate significant differences in institutional investment strategies towards cryptocurrencies. While Mubadala seems to hold a more growth-oriented perspective towards Bitcoin's future, Wisconsin’s withdrawal suggests caution, possibly driven by a reassessment of its exposure to volatile crypto assets amid uncertain market conditions. This highlights how institutional investors are adapting their strategies within the complex interplay of traditional finance and increasing crypto integration, each taking distinct paths to manage risk and opportunity in the evolving digital economy.
