Wisconsin pension fund sells IBIT before transaction conflict

All $321.5 million in Wisconsin Investment Commission ishares Bitcoin Trust (GO)Sales were made before international trade tensions escalated, according to a filing filed by the Securities and Exchange Commission on Thursday.

The document shows that Wisconsin's reversal occurred a few months after initially receiving Bitcoin exposure. According to the 13F filing, SWIB liquidated more than 6.1 million IBIT shares from its portfolio in the first quarter of 2025 and ended its divestment at the end of March.

The withdrawal of pension funds from cryptocurrency investments occurred just days ago with trade policy changes that caused market volatility, highlighting that large institutional investors may reconsider digital asset holdings when economic conditions seem uncertain.

As one of the first state pension funds to invest in Bitcoin ETFs, Swib's withdrawal raised questions about institutional investors' long-term commitment to digital assets, especially in the face of economic headwinds.

After Wisconsin leaves the Bitcoin market, cryptocurrency valuations have put pressure on international trade relations. In early April, the new administration imposed extensive tariffs that affected global relations with close American allies.

As Bitcoin prices later, pension funds exits proved timely due to growing trade divisions. By March, the U.S. tariffs on Chinese products reached 145%, while China's fees on U.S. imported products were 125%.

By mid-May, the two countries began to ease trade restrictions, with U.S. interest rates on Chinese goods falling to 30%, while Chinese tariffs on U.S. products fell to 10%.

According to CoinMarketCap, Bitcoin price fell by $75,000 during this period of economic friction. Bitcoin prices mostly recovered after the quarter, reaching $105,747 in the past month as markets recovered stably and trade tensions lowered.

Despite leaving behind direct Bitcoin investments, pension funds maintain some cryptocurrency risks. The document shows that SWIB holds a 127,528-share strategy (MSTR), formerly known as MicroStrategy, and is worth approximately $36.8 million, which is smaller than the previous ETF position.