Institutional investors and US states are increasingly turning their attention to the Bitcoin ETF market following the regulatory approval by the US Securities and Exchange Commission (SEC) earlier this year. In a notable development, the Wisconsin Investment Board has committed nearly $100 million to BlackRock’s iShares Bitcoin Trust ETF, showcasing the rising confidence in this burgeoning sector.

According to a recent 13F form filed with the SEC, the Wisconsin Investment Board has acquired $98.6 million worth of shares in BlackRock’s Bitcoin ETF. This substantial investment highlights BlackRock’s expanding footprint in the newly regulated market, which has seen a significant uptick in both inflows and trading volume since January.

The move by Wisconsin is part of a broader trend of US states exploring opportunities in the Bitcoin ETF market. For instance, Keith Ammon, New Hampshire State Representative and Vice Chair of Commerce and Consumer Affairs, has initiated discussions on diversifying the state’s financial reserves by investing in Bitcoin ETFs. Ammon’s analysis, reported by Bitcoinist, suggests that if New Hampshire had allocated just 5% ($4.65 million) of its 2016 rainy day fund to Bitcoin, the investment would now be worth nearly $473 million, reflecting a staggering 10,000% return.

Ammon also cited insights from Manuel Nordeste, Fidelity’s Vice President of Digital Assets, who noted the growing trend among major pension funds and big banks towards allocating funds to spot Bitcoin ETFs. Nordeste’s observations reveal that 25% of pension managers personally own digital assets, indicating a significant shift in interest within the digital asset market. Ammon further argued that if only 1% of state pension assets under management ($5.5 trillion) were directed towards Bitcoin, it could surpass mining revenue, creating a supply shortage and driving further price increases.

These developments underscore the increasing allure of Bitcoin ETFs for institutional investors and US states. With continued regulatory support and rising interest, the Bitcoin ETF market appears poised for substantial growth in the coming months.

As of press time, Bitcoin, the largest cryptocurrency by market capitalization, is trading at $61,600, following failed attempts to consolidate above Monday’s high of $63,000. The ongoing developments in the ETF market are expected to play a crucial role in shaping Bitcoin’s price dynamics and overall market trajectory.