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The State of Wisconsin Investment Board (SWIB) has made a crucial pivot to invest in spot Bitcoin ETF products, carving out a rare space in the traditional finance sector. This move was specifically spotlighted by Michael Saylor, who described the firm as a "fiscally sound pension fund" that sees the value of Bitcoin.
As a $180 billion investment fund, SWIB has injected the sum of $162 million to buy shares of BlackRock and Grayscale Investments. Commenting on this move, Marquette University Professor Emeritus David Krause noted that more investment funds in other states are likely to make a related pivot in the long term.
When asked if the volatility of Bitcoin is a concern in an interview on the Here & Now Show of the PBS Wisconsin Channel, Professor Krause noted that almost all traditional assets are volatile in some way. He believes that the fact that Bitcoin is more volatile in nature does not make it less viable as a major portfolio boost.
Alex DovbnyaThe finance professor also noted that the allocation of Bitcoin in SWIB’s portfolio is much less than its total Assets Under Management (AUM). He believes that for any major risk to be recorded, the fund or any other major institutional investor may have to inject close to 1-3% of the AUM in the asset.
Many mainstream financial giants are also reasonably warming up to Bitcoin, as showcased in the past few weeks. Susquehanna International Group (SIG), for instance, invested a total of $1 billion across the different spot Bitcoin ETF issuers. Besides, SIG, BNP Paribas, Morgan Stanley and even UBS have upped their respective antes as relates to the spot Bitcoin ETF.
While Michael Saylor's MicroStrategy pioneered Wall Street embrace of the digital currency, the presence of many investors might help the coin achieve the projected $500,000 mark by 2025, according to Chamath Palihapitiya.
Yuri Molchan
Denys Serhiichuk