The State of Wisconsin Investment Board (SWIB) has sold its entire $300 million stake in a Bitcoin exchange-traded fund (ETF). The sale was disclosed in a recent filing with the U.S. Securities and Exchange Commission (SEC). The move comes amid increasing U.S.-China trade tensions and sweeping tariffs from the Trump administration.
The sale occurred during the first quarter of 2025, just before a series of comprehensive U.S. tariffs took effect. According to the SEC filing dated May 15, SWIB liquidated its Bitcoin holdings ahead of the March 31 reporting deadline. As of a previous filing dated February 14, the board held a substantial position.
The broader economic landscape shifted significantly following President Donald Trump’s aggressive new trade policies. These policies aim to reshape manufacturing in the U.S. and spur domestic growth. On February 1, the administration announced tariffs on goods from Canada and Mexico and a 10% tariff on Chinese imports.
These tariffs contributed to marked market instability.
Wisconsin exits Bitcoin amid tariffs
On March 4, U.S. tariffs on Chinese goods increased to 20%.
This led to a retaliatory spiral, with U.S. tariffs surging to 145% and China raising its tariffs on U.S. products to 125%. Cryptocurrency markets were not immune to these developments. Bitcoin fell 2.3% to around $83,200, while Ethereum dropped 4.5%.
In May, tensions began to ease when the U.S. and China temporarily scaled back their tariff rates. The U.S. lowered its tariffs on Chinese goods to 30%, and China reduced its tariffs on U.S. imports to 10%. As of mid-May, President Trump has also paused most tariffs on other countries.
This strategic move by SWIB reflects a broader trend of market participants reacting to geopolitical events. The sale showcases the volatile nature of the trade environment and its significant impact on financial markets. It highlights how political and economic uncertainty can influence investment decisions.