https://x.com/Grayscale/status/1925205288900280797
The State of Wisconsin Investment Board (SWIB) sold its entire $300 million stake in a Bitcoin ETF during the first quarter of 2025. The sale happened as U.S.-China trade tensions escalated and the Trump administration imposed tariffs on imports. These events caused the crypto markets to decline.
https://x.com/NateGeraci/status/1925380675617649116
SEC filings from May 15 show that the Wisconsin fund had divested from its substantial Bitcoin ETF holdings by the end of the first quarter. In mid-February, these holdings were valued at over $300 million. The fund’s decision was influenced by the changing economic landscape under the Trump administration’s aggressive trade policies.
The U.S. implemented tariffs on imports from Canada, Mexico, and China starting on February 4.
Wisconsin divests amid trade tensions
By March 4, the tariff rates on Chinese goods had risen to 20%.
https://x.com/NateGeraci/status/1925369729650241613
This contributed to significant market volatility. Goldman Sachs analysts projected that these new tariffs could raise core inflation to 3.8% within the year. As the trade war unfolded, Bitcoin fell by 2.3% to around $83,200, and Ethereum declined by 4.5%.
In May, tensions began to ease as the U.S. and China agreed to temporarily lower tariffs. The U.S. reduced its tariff rate on Chinese goods to 30%, and China lowered tariffs on U.S. imports to 10%. This temporary respite brought some stability back to the markets.
The latest SEC filings and market analysis highlight the significant impact of geopolitical developments on financial markets, especially emerging assets like cryptocurrencies.