The State of Michigan’s pension fund has made a big move into the world of cryptocurrencies, investing in both Bitcoin and Ethereum exchange-traded funds (ETFs).
Michigan Leads the Way in Ethereum Investing
The Michigan Retirement System, which manages the pensions of state employees, has invested over $6.9 million in the ARK/21Shares Bitcoin ETF. But what really sets Michigan apart is its investment in an Ethereum ETF. This makes Michigan the first state pension fund to invest in an Ethereum ETF, showing a commitment to diversifying its crypto portfolio.
Experts are taking notice. Matthew Sigel, a digital asset researcher, says Michigan is now among the top five holders of Ethereum and the Grayscale Ethereum Trust. Eric Balchunas, a Bloomberg ETF expert, points out that Michigan’s $10 million investment in Ethereum ETFs actually exceeds its investment in Bitcoin ETFs.
A Growing Trend in Institutional Crypto Investing
While Michigan is making headlines, it’s not the only state pension fund investing in crypto. The Wisconsin Investment Board, which manages a much larger fund, has already disclosed holdings in Bitcoin ETFs.
This trend of institutional investors entering the crypto market is reflected in the growing demand for spot Bitcoin ETFs. However, Ethereum ETFs haven’t seen the same level of success in the US market yet.
A Mixed Bag for Bitcoin ETFs
Despite a strong performance in October, Bitcoin ETFs experienced some challenges in early November. Several ETFs saw significant outflows, including Fidelity’s FBTC and ARK & 21Shares’ ARKB. However, Grayscale’s GBTC saw relatively stable outflows, and BlackRock’s iShares Bitcoin Trust (IBIT) even saw a pause in capital flow after a period of strong influx.
While the crypto market is constantly evolving, Michigan’s bold move into Ethereum ETFs is a clear signal that institutional investors are increasingly seeing the value in digital assets.
