On Monday, the state of Michigan revealed substantial investments in cryptocurrency exchange-traded funds (ETFs) for Bitcoin and Ethereum in a 13F filing with the U.S. Securities and Exchange Commission (SEC).
This strategic move marks an important milestone for institutional investment in digital assets, as the Michigan Retirement System manages approximately $144 million in pension fund assets for state employees.
Michigan becomes first state pension fund to invest in Ethereum ETF
The Michigan Retirement System disclosed an investment of more than $6.9 million in the ARK/21Shares Bitcoin ETF, equivalent to approximately 110,000 shares of the fund.
Additionally, Michigan became the first state pension fund to invest in an ETF containing Ethereum, further diversifying its cryptocurrency portfolio. Matthew Sigel, head of digital assets research at VanEck, noted that Michigan has now entered the ranks of the top five holders of Ethereum and Grayscale. Ethereum Trust (ETHE).
Eric Balchunas, ETF expert at Bloomberg highlighted the significant investment Michigan made in Ethereum ETFs, amounting to $10 million, which exceeds its investment in Bitcoin ETFs.
In contrast, the State of Wisconsin’s Investment Board, which manages $156 billion for its retirement system, has already disclosed holdings in Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust and Grayscale Bitcoin Trust.
This information is part of the 13F quarterly filings, which provide an overview of institutional investment strategies approximately 45 days after the end of each quarter.
Spot Bitcoin ETFs Hit Six-Month High
Demand for spot Bitcoin ETFs has jumped to a six-month high, signaling strong interest in Bitcoin as an investment vehicle. However, Ethereum ETFs have yet to replicate this success in the US market.
Despite strong performance through October, Bitcoin ETFs faced challenges in early November, with a declared net outflow of $54.9 million on November 1.
Fidelity’s FBTC accounted for almost half of these outflows, totaling approximately $25.64 million, while ARK & 21Shares’ ARKB saw a similar drop of $24.13 million.
Grayscale’s GBTC, traditionally associated with capital outflows, saw only $5.51 million in outflows, indicating relative stabilization compared to previous trends.
Interestingly, BlackRock’s iShares Bitcoin Trust (IBIT) has not recorded any influx or exit on November 1, marking a pause after 14 consecutive days of capital inflows. Previously, IBIT saw a large inflow of $872 million on October 30.
At the time of writing, the largest cryptocurrency on the market, Bitcoin, is trading at $67,970, down almost 2% in 24 hours. Ethereum, on the other hand, is down 3% over the same period, trading at $2,407.
Featured image of DALL-E, chart by TradingView.com
