Pension Funds investing in BTC ETF: Why It Matters

Who is buying BTC ETF ? The recent SEC filings revealed not only hegde funds and traders, but also more “serious” financial institutions like the pensions funds, which give Bitcoin exposure to millions of clients.

One of the reasons a Bitcoin spot ETF approval was so important for the crypto world is that it would give traditional financial institutions the possibility to invest in BTC.

Why were these institutions important? Because through them, millions of people who would now otherwise dare to buy BTC would get exposure to it.

🏦The type of financial institution that invests in BTC ETFs is important for understanding if this thesis is proven true. In other words, are there only hedge funds and investing advisors ready to gamble with the money of their high-net-worth clients, or are there more socially responsible entities, like pension funds or insurance companies.

Who are BTC ETF investors?

The recent SEC F13 filings of BTC ETF holders have clarified things a lot.
Over 1,000 ETF investors declared their holdings, with the biggest one being Millenium Management (investment firm) with $1.94 billion 💰
Unsurprisingly, the top-10 are mostly investment advisors, hedge funds, and trading firms.

Pension funds trying out Bitcoin

However, the ETF holders list also contained some extremely curious entities, such as The State of Wisconsin Investment Board (SWIB). It invested $163 million in BTC ETF, which represents only 0.1% of its assets, and many consider that the pension fund is just testing the waters and gauging public opinion before investing much more.

Back in 2021, the Houston Firefighters’ Relief and Retirement Fund 🧑‍🚒 made headlines by investing approximately $25 million in Bitcoin, a move that remained an isolated case at the time.

Now, as more pension funds begin diversifying into BTC (btw the Government Pension Investment Fund of Japan is said to consider BTC too), it could usher in a whole new era for the Bitcoin market. Imagine just a tiny share of the trillions of dollars currently managed by pension funds invested in bitcoin – what a massive buying pressure this could create for the leading cryptocurrency!

The main barriers for this type of institutional invetsors are still psychological and political: bitcoin is still considered too volatile and too dangerous (mostly for the reputation 😏)

That’s why pioneers like the Wisconsin pension fund are important.

Looking forward to the next wave of F13 filings 👀