In recent years, crypto has proven to be one of the most profitable investments, and everyone has been getting in on it. Everyone, from your taxi driver to your teenage nephew, has been investing in crypto as it becomes the new normal. One thing no one saw coming is states investing in crypto. However, Wisconsin is changing the narrative and bringing states to the crypto dining table.
Related: Millennium Management Reveals $2B Investment in Bitcoin ETFs
Wisconsin, America’s 25th largest state, has become the first state to invest in Bitcoin ETFs. The state is reported to have purchased $160 million worth of Bitcoin ETFs. The State of Wisconsin Investment Board (SWIB) has disclosed that it now holds more than 2.4 million shares in the BlackRock iShares Bitcoin Trust (IBIT) and 1 million shares of Grayscale Bitcoin Trust (GBT).
All of this was disclosed in the SEC’s Form 13F, which investment firms are required to file, and analysts have wasted no time sharing their thoughts. Emeritus Professor at Marquette University, David Krause, shared his thoughts in a PBS interview. He believes that Wisconsin will not be the only US state to make this investment but that soon, more states will get into the game. He also mentioned that Wisconsin’s $160 million investment is “just a toe in the water” to see how things go. So, more investment could come in if the test comes with a nice testimony.
One of the major advantages of this investment is that it helps the state diversify its portfolio and mitigate risk. The SWIB has already mentioned that it has over $156 billion in assets it’s currently managing, including real estate to private equity. The Bitcoin ETFs help spice up the portfolio. If this costly test works, it means Wisconsin can be Wis-counting a lot of profit.
Who Will Follow?
As for other states, just like Karuse said, many states will likely follow. First, ETFs are the new rave in the investment world, and everyone has FOMO, even states. However, there’s also the reality that not every state can afford the investment. To that, Krause says, “I don’t expect those underfunded to afford to do that,” but if more states follow in the footsteps of Wisconsin, it would be a big win for cryptocurrency in general. That kind of chain reaction by governmental bodies would mean cryptocurrency gets closer to mainstream acceptance and adoption.
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At this point, we can only take guesses on whether or not more states will go the Wisconsin way; after all, crypto is still not exactly welcomed by all, especially governments. It is, however, not an impossibility, especially if Wisconsin’s $160 million bet pays off. Again, even states get FOMO.
Whatever happens with the investment, one thing is sure: other states will be watching, and so will we!
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