Wisconsin Invests $99M in BlackRock’s Bitcoin ETF
Institutional investors and US states are showing increased interest in Bitcoin exchange-traded funds (ETFs) after the SEC’s approval in January. Wisconsin’s investment board has invested approximately $100 million in BlackRock’s iShares Bitcoin Trust ETF.
Growing Interest from US States
New Hampshire State Representative Keith Ammon has proposed diversifying the state’s financial reserves by investing in Bitcoin ETFs. Ammon believes that if New Hampshire had invested 5% of its 2016 rainy day fund in Bitcoin, it would now be worth nearly $473 million.
Pension Funds and Big Banks Allocating Funds to Bitcoin ETFs
Fidelity’s Vice President of Digital Assets, Manuel Nordeste, has observed a growing trend among pension funds and big banks towards allocating funds to spot Bitcoin ETFs. According to Nordeste, 25% of pension managers personally own digital assets.
Potential for Expansion
If just 1% of state pension assets under management were to flow into Bitcoin, it could surpass mining revenue and drive further price increases for Bitcoin. The Bitcoin ETF market is expected to experience further expansion in the coming months as regulatory approval continues and interest grows.
