- Wisconsin’s $321M IBIT exit contrasts with Mubadala and Citadel’s increasing exposure, revealing diverging institutional Bitcoin ETF strategies.
- Despite Wisconsin’s sell-off, IBIT maintains dominance with over $45B in net inflows, outperforming Fidelity’s FBTC and ARK’s Bitcoin ETF.
- SWIB’s full IBIT liquidation signals a shift in crypto allocation while major funds like Mubadala double down on long-term Bitcoin bets.
The State of Wisconsin Investment Board (SWIB) has fully liquidated its $321 million stake in BlackRock’s iShares Bitcoin Trust (IBIT) during Q1 2025. This surprise move was revealed in a 13F filing with the U.S. SEC. Notably, SWIB previously ranked among the earliest state funds to gain exposure to spot Bitcoin ETFs. The fund initially invested $164 million during Q1 2024, the same quarter IBIT launched. However, this quarter marks a sharp pivot in strategy.
Besides IBIT, SWIB also held Coinbase shares, now reduced to $19 million. Moreover, the fund’s earlier 1 million-share allocation in the Grayscale Bitcoin Trust (GBTC) had been reallocated to IBIT last quarter. The rapid change signals a reevaluation of crypto exposure within SWIB’s $166 billion portfolio. Bitcoin ETFs had previously represented only 0.2% of its total assets.
Institutions Show Mixed Sentiment
However, other institutions have ramped up their IBIT exposure. Abu Dhabi’s sovereign wealth fund, Mubadala, acquired 491,439 new IBIT shares in Q1, bringing its total to 8,726,972 shares worth around $512 million. This reflects a sharp contrast to Wisconsin’s full exit.
Additionally, Citadel Advisors raised its IBIT position substantially. The firm now holds over 3 million IBIT shares valued at $147 million. Moreover, it holds $676 million in IBIT call options and $366 million in puts. This dual strategy underlines both optimism and caution in their approach.
IBIT Maintains Market Dominance
Consequently, IBIT continues to dominate Bitcoin ETF inflows. As of May 14, it surpassed $45 billion in total net inflows. Though inflows halted briefly on May 13, the ETF has not recorded any outflows since April 9. This streak further cements IBIT’s position ahead of rivals like Fidelity’s FBTC and ARK’s ARK ETF. FBTC and ARK currently trail with $11.6 billion and $2.7 billion in inflows, respectively.
Hence, despite Wisconsin’s complete withdrawal, institutional momentum around IBIT remains strong. Bitcoin ETF dynamics now reflect broader market divergence. While some investors scale back, others are doubling down on long-term Bitcoin exposure.
