Wisconsin Becomes The First State to Buy Bitcoin (BTC), These 3 States May Be Next
For cryptocurrency to become more valuable and for the prices to go up, more people need to own it. One of the most robust and most feasible ways for this to happen is with institutions investing directly in bitcoin or into bitcoin indirectly through the spot ETFs, which were released in January. While some entities, such as MicroStrategy (MSTR), have taken the route of investing in bitcoin directly, others, such as the State of Wisconsin, have begun investing indirectly. Either way, it is still a positive for cryptocurrency, as more people are investing and gaining exposure to the asset class.
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The State of Wisconsin Investment Board bought over $160 million of spot bitcoin ETFs. It invested $98 million in BlackRock's iShares bitcoin Trust (IBIT) and $63 million in Grayscale's spot bitcoin ETF (GBTC). While this is extremely small considering that the entire fund holds more than $156 billion in assets, it is still notable, as few large institutions invest in bitcoin.
The ETFs were approved this January, allowing equity investors to gain exposure to the price movements of bitcoin. This works by the sponsor of the ETF buying bitcoins and then packaging them into shares, which are then distributed to the public. This allows investors to access the price movements of bitcoin without having to take the time to invest in the token directly.
Bloomberg ETF analyst Eric Blachunas commented on the investment on X, saying that "normally you don’t get these big fish institutions in the 13Fs for a year or so (when the ETF gets more liquidity), but as we’ve seen, these are no ordinary launches. Good sign, expect more, as institutions tend to move in herds."
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Balchunas believes that more funds could begin investing. Speculators have started thinking of states that could follow Wisconsin’s investment strategy, and two states that come to mind are Florida and Wyoming. These states, in particular, are known for their openness to cryptocurrency and for passing pro-crypto laws. This could create a climate within the states that is more open to crypto as an investment, leading to the state's pension funds buying bitcoin or other crypto assets.
The news comes as talks of a spot ethereum ETF intensify. If the ETFs are approved later this week, it could make it even stronger for large entities to invest in crypto, as it removes more regulatory hurdles and indicates that crypto has staying power in the investing community.
This is a strong turning point for crypto, as increased institutional attention opens the possibility of increased adoption overall and the start of a new era for crypto.
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