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Wisconsin Becomes First State to Buy Bitcoin (BTC), These 3 States Could Be Next
Wisconsin Becomes First State to Buy Bitcoin (BTC), These 3 States Could Be Next
For cryptocurrency to become more valuable and prices to rise, more people need to own it. One of the most robust and feasible ways for this to happen is for institutions to invest directly in bitcoin or indirectly in bitcoin through spot ETFs, which were released in January. While some entities, such as MicroStrategy (MSTR), have taken the path of investing directly in bitcoin, others, such as the State of Wisconsin, have begun investing indirectly. Regardless, it’s still a positive for cryptocurrency, as more and more people are investing and gaining exposure to the asset class.
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The State of Wisconsin Investment Board purchased more than $160 million in spot bitcoin ETFs. It invested $98 million in BlackRock’s iShares bitcoin Trust (IBIT) and $63 million in Grayscale’s bitcoin spot ETF (GBTC). While this is extremely small considering the entire fund holds more than $156 billion in assets, it is still notable, as few large institutions invest in bitcoin.
ETFs were approved last January, allowing equity investors to gain exposure to bitcoin’s price movements. It works by having the ETF sponsor purchase bitcoins and then package them into shares, which are then distributed to the public. This allows investors to access bitcoin’s price movements without having to take the time to invest directly in the token.
Bloomberg ETF analyst Eric Blachunas commented on the investment on Xstating that “you don’t normally get these big fish institutions in the 13Fs for about a year (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 packs.”
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Balchunas believes that more funds could start to be invested. Speculators have started thinking about 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 and transition to cryptocurrencies pro-cryptocurrency laws. This could create a climate within states that is more open to cryptocurrencies as an investment, leading state pension funds to purchase bitcoin or other crypto assets.
The news comes as talks on an Ethereum spot ETF intensify. If ETFs are approved later this week, it could make it even stronger for large entities to invest in cryptocurrencies, as it would remove additional regulatory hurdles and indicate that cryptocurrencies have staying power in the investment community.
The story continues
This is a strong turning point for cryptocurrencies, as increased institutional attention opens up the possibility of greater adoption overall and the start of a new era for cryptocurrencies.
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This article Wisconsin Becomes First State to Buy Bitcoin (BTC), These 3 States Could Be Next originally appeared on Benzinga.com
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