The State of Michigan Retirement System’s calculated cryptocurrency investments are generating news. In addition to keeping its stake in Bitcoin exchange-traded funds (ETFs), the pension fund has made a significant move into Ethereum ETFs, per a recent filing with the U.S. Securities and Exchange Commission.
According to a November 4 filing, Michigan’s pension fund disclosed that it has 460,000 shares of both the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust. This new purchase complements its current holding of 110,000 shares in the ARK 21Shares Bitcoin ETF, whose value has increased by about $1 million since the last report in June.
The fund currently has approximately $18 million in total value from its cryptocurrency investments, indicating a strong commitment to digital assets. Being the first state pension fund in the United States to invest in Ethereum ETFs, Michigan’s move to diversify into Ethereum is a noteworthy milestone. This change suggests that people are becoming more interested in digital assets other than Bitcoin.
Cryptocurrency use by pension funds is becoming more popular. There is growing institutional acceptance of digital currencies, as seen by the actions taken by other jurisdictions like Florida and Wisconsin to incorporate Bitcoin ETFs into their investing strategy.
Michigan’s recent investments reflect growing awareness of the potential advantages of bitcoin in state pension portfolios. As more government agencies investigate cryptocurrency options, the environment for institutional investments in digital assets is rapidly changing, paving the way for eventual widespread adoption.
