Michigan State Pension Fund Invests in Bitcoin and Ethereum ETFs

Michigan’s Bold Move into Cryptocurrency ETFs

State Pension Fund Diversifies with Ethereum Investment

Michigan’s state pension fund recently disclosed significant investments in cryptocurrency exchange-traded funds (ETFs) for Bitcoin and Ethereum. This move highlights a substantial step towards institutional investment in digital assets. The Michigan Retirement System, overseeing around $144 million in pension fund assets for state employees, now holds over $6.9 million in the ARK/21Shares Bitcoin ETF and has become the first state pension fund to invest in an ETF that includes Ethereum. This strategic decision has positioned Michigan as one of the top holders of Ethereum and the Grayscale Ethereum Trust.

Comparing State Pension Fund Investments

Michigan’s investment in Ethereum ETFs, totaling $10 million, surpasses its Bitcoin ETF investment and sets it apart from other state pension funds. For instance, the state of Wisconsin’s investment board, managing $156 billion for its retirement system, previously revealed holdings in Bitcoin ETFs but has yet to venture into Ethereum ETFs.

Spot Bitcoin ETFs Reach Six-Month High

Challenges Faced by Bitcoin ETFs Amidst Strong Demand

While the demand for spot Bitcoin ETFs has surged to a six-month high, Ethereum ETFs are still striving to gain traction in the US market. Despite a strong performance in October, Bitcoin ETFs encountered challenges at the start of November with reported net outflows totaling $54.9 million, led by Fidelity’s FBTC and ARK & 21Shares’ ARKB. In contrast, Grayscale’s GBTC saw relatively stabilized outflows, and BlackRock’s iShares Bitcoin Trust experienced a pause in inflow after a significant influx in late October.

As of the latest update, Bitcoin is trading at $67,970, showing a 2% decrease in 24 hours, while Ethereum is trading at $2,407, marking a 3% decline over the same period.

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