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 US Securities and Exchange Commission (SEC).
This strategic move marks a big step for institutional investment in digital assets, because the Michigan Retirement System manages roughly $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 over $6.9 million within the ARK/21Shares Bitcoin ETF, equating to around 110,000 shares of the fund.
Furthermore, Michigan has turn out to be the primary state pension fund to take a position in an ETF that holds Ethereum, further diversifying its crypto portfolio. Matthew Sigel, head of digital asset research at VanEck, noted that Michigan has now entered the ranks of the highest five holders of Ethereum and the Grayscale Ethereum Trust (ETHE).
Bloomberg ETF expert Eric Balchunas highlighted the numerous investment Michigan has made in Ethereum ETFs, amounting to $10 million, which surpasses its Bitcoin ETF investment.
In contrast, the state of Wisconsin’s investment board, which manages $156 billion for its retirement system, has previously disclosed holdings in Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust and the Grayscale Bitcoin Trust.
These disclosures are a part of the quarterly 13F filings, which give a snapshot of institutional investment strategies roughly 45 days after the tip of every quarter.
Spot Bitcoin ETFs Reach Six-Month High
The demand for spot Bitcoin ETFs has surged to a six-month high, signaling strong interest in Bitcoin as an investment vehicle. Nonetheless, Ethereum ETFs have yet to copy this success within the US market.
Despite a robust performance through October, Bitcoin ETFs faced challenges in the beginning of November, with a reported net outflow of $54.9 million on November 1.
Fidelity’s FBTC accounted for nearly half of this outflow, totaling roughly $25.64 million, while ARK & 21Shares’ ARKB experienced the same drop of $24.13 million.
Grayscale’s GBTC, traditionally related to capital outflows, only recorded $5.51 million in outflows, indicating a relative stabilization in comparison with previous trends.
Interestingly, BlackRock’s iShares Bitcoin Trust (IBIT) didn’t register any inflow or outflow on November 1, marking a pause after 14 consecutive days of capital influx. Prior to this, IBIT had experienced a big influx of $872 million on October 30.
On the time of writing, the most important cryptocurrency available on the market, Bitcoin, is trading at $67,970, down nearly 2% in 24 hours. Ethereum, alternatively, is down 3% over the identical period, trading at $2,407.
Featured image from DALL-E, chart from TradingView.com