Institutional investors and U.S. states are showing increased interest in the Bitcoin ETF market following regulatory approval by the U.S. Securities and Exchange Commission (SEC) in January.

The latest findings show that the Wisconsin Investment Board invested approximately $100 million in BlackRock’s iShares Bitcoin Trust ETF.

United States Eye Bitcoin ETF Market

According to a recent one Form 13F filed with the SEC, the Wisconsin Investment Board purchased shares of the BlackRock ETF worth $98.6 million.

This significant investment contributes to BlackRock’s growing presence in the newly regulated market, which has seen significant growth in inflows and trading volume since January.

Additionally, demonstrating the growing interest of U.S. states in exploring investment opportunities in the Bitcoin ETF market, Keith Ammon, Fresh Hampshire State Representative and Vice Chairman of Trade and Consumer Affairs, recently initiated a discussion on diversifying the state’s financial reserves by investing in Bitcoin ETFs.

BTC ETFs ready for expansion?

How reported via Bitcoinist on Monday, Ammon’s analysis highlights the potential benefits. It states that if Fresh Hampshire had allocated just 5% ($4.65 million) of its 2016 rainy day fund to Bitcoin, it would now be worth almost half a billion dollars ($473 million), a significant return on investment at 10,000%.

Ammon also references Manuel Nordeste, Fidelity’s vice president of digital assets, who highlights a growing trend among major pension funds and enormous banks toward allocating funds to seek out Bitcoin ETFs.

Nordeste’s insights show that 25% of pension managers personally own digital assets, indicating a significant shift in interest in the digital asset market.

Ammon suggests that if just 1% of state pension assets under management ($5.5 trillion) were to flow into Bitcoin, it would exceed mining revenues, creating a supply shortfall relative to demand and causing Bitcoin prices to continue to rise.

Taken together, these developments underscore the growing attractiveness of Bitcoin ETFs to both institutional investors and US states. With continued regulatory approval and growing interest, it appears that the Bitcoin ETF market is poised for further expansion in the coming months.

At press time, the market’s largest cryptocurrency is trading at $61,600 after failing to consolidate above Monday’s high of $63,000.

Featured image from Shutterstock, chart from TradingView.com