The State of Wisconsin Investment Board sold off its entire $321.5 million stake in BlackRock’s iShares Bitcoin Trust (IBIT), according to a Thursday Securities and Exchange Commission filing, with the sale coming before international trade tensions escalated.
The filing shows Wisconsin’s reversal came months after initially embracing Bitcoin exposure. According to the 13F filing, SWIB liquidated over 6.1 million IBIT shares from its portfolio during 2025’s first quarter, concluding the divestment by the end of March.
The pension fund’s withdrawal from cryptocurrency investment occurred just days before sweeping trade policy changes created market volatility, highlighting how large institutional investors may reconsider digital asset holdings when economic conditions appear uncertain.
As one of the first state pension funds to invest in Bitcoin ETFs when they launched, SWIB’s withdrawal raises questions about the long-term commitment of institutional investors to digital assets, especially when facing economic headwinds.
After Wisconsin departed from the Bitcoin market, cryptocurrency valuations experienced pressure as international trade relations deteriorated. In early April, the new administration implemented broad tariffs affecting global relationships with close U.S. allies.
The pension fund’s exit proved well-timed as Bitcoin prices later declined amid growing trade disagreements. By March, U.S. tariffs on Chinese products reached 145%, while China countered with 125% fees on American imports.
By mid-May, both nations began easing trade restrictions, with U.S. rates on Chinese goods dropping to 30% while Chinese duties on American products decreased to 10%.
During this period of economic friction, Bitcoin prices dropped below $75,000, according to data from CoinMarketCap. Following the quarter’s end, Bitcoin prices had mostly recovered, reaching a high of $105,747 over the past month as market stability returned and trade tensions diminished.
Despite leaving direct Bitcoin investment, the pension fund maintained some cryptocurrency exposure. The filing reveals SWIB holds 127,528 shares of Strategy (MSTR), formerly known as MicroStrategy, valued at around $36.8 million, representing a smaller crypto allocation than their previous ETF position.
