On Monday, the state of Michigan announced 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 step for institutional investments in digital assets, as the Michigan Retirement System manages approximately $144 million in state employee benefit plan assets.
Michigan becomes the first state pension fund to invest in the Ethereum ETF
The Michigan Retirement System revealed an investment of over $6.9 million in the ARK/21Shares Bitcoin ETF, representing approximately 110,000 shares of the fund.
Additionally, Michigan has become the first state pension fund to invest in an ETF that holds Ethereum, further diversifying its crypto portfolio. Matthew Sigel, head of digital asset research at VanEck, noted that Michigan is now included among the top five holders of Ethereum and the Grayscale Ethereum trust (SHE SAID).
Bloomberg ETF expert Eric Balchunas marked the significant investment Michigan has made in Ethereum ETFs, worth $10 million, surpassing its Bitcoin ETF investment.
In contrast, the Wisconsin State Investment Board, which manages $156 billion for its pension system, has done so before revealed positions in Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust and the Grayscale Bitcoin Trust.
These disclosures are part of the quarterly 13F filings, which provide a snapshot of institutional investment strategies approximately 45 days after the end of each quarter.
Spot Bitcoin ETFs Hit Six-Month Highs
Demand for spot Bitcoin ETFs has increased rose to a six-month high, indicating 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 reported net outflow from $54.9 million on November 1.
Fidelity’s FBTC accounted for nearly half of these outflows, totaling approximately $25.64 million, while ARK & 21Shares’ ARKB experienced a similar decline of $24.13 million.
Grayscale’s GBTC, traditionally associated with capital outflows, recorded just $5.51 million in outflows, indicating a relative stabilization compared to previous trends.
Interestingly, BlackRock’s iShares Bitcoin Trust (IBIT) has none registered inflow or outflows on November 1, which marks a pause after 14 consecutive days of capital inflows. Previously, IBIT had experienced a significant inflow of $872 million as of 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 and is trading at $2,407.
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