U.S. Pension Fund Expands Bitcoin Investment as Institutional Interest Grows

Wisconsin’s state pension fund has made a significant move into Bitcoin, increasing its holdings to approximately $321 million, according to recent regulatory filings.

This marks a sharp rise from its previous $164 million investment reported in mid-2024, reflecting a deepening commitment to the crypto market.

Previously, the fund had split its Bitcoin allocation between BlackRock’s iShares Bitcoin Trust (IBIT) and Grayscale’s Bitcoin Trust (GBTC). However, its latest filing reveals a shift in strategy, with all holdings now concentrated in IBIT. The decision to move away from GBTC suggests a preference for BlackRock’s offering, possibly due to lower fees or better liquidity.

Institutional interest in Bitcoin has been growing, and Wisconsin is not alone in exploring this asset class. Other state-managed funds have also begun dipping their toes into crypto investments. Michigan’s pension system disclosed a small Bitcoin allocation in 2024, while Florida officials have been actively pushing for BTC exposure in state-managed funds. Meanwhile, North Carolina legislators recently introduced a bill that could pave the way for indirect crypto investments via ETFs.

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Despite Bitcoin’s reputation for volatility, pension funds operate with a long-term perspective, often looking beyond short-term price swings. Legal analysts suggest that state-managed funds may have an easier path to crypto adoption compared to private institutions, which face stricter fiduciary constraints.

As more public investment funds reconsider their asset allocation strategies, Wisconsin’s increased Bitcoin exposure signals a broader shift in how traditional financial institutions view digital assets. If this trend continues, Bitcoin could become a more established component of pension fund portfolios in the years ahead.

Alexander Stefanov