Michigan Becomes First State Pension Fund To Invest In Ethereum ETFs With $10 Million Buy
The State of Michigan Retirement System has disclosed a new holding in Grayscales Ethereum exchange-traded fund, becoming the first public pension fund to do so since the ETH-based product commenced trading on U.S. exchanges in July.
This strategic move marks a huge step for institutional investment in crypto assets, as the Michigan Retirement System manages roughly $13.6 billion in pension fund assets for state employees.
Michigan Diversifies Crypto Holdings With $10 Million Ether Buy
In a 13-F disclosure filed Monday with the U.S. Securities and Exchange Commission (SEC), Michigans pension fund revealed it has scooped up 460,000 shares in Grayscales Ethereum Trust (ETHE), valued at approximately $10.07 million, along with an additional 1.1 million worth of shares in the Grayscale Ethereum Mini Trust (ETH).
According to VanEcks head of digital asset research, Matthew Sigel, Michigan has now become one of the top five holders of Grayscales ETH and ETHE.
Whats more interesting is that the Michigan pension fund now owns more Ether than Bitcoin, despite the latter being greenlighted by the securities regulator several months in advance.
The move sets Michigan apart as most state pension funds focus mostly on Bitcoin investments.
A Pretty Big Win For Ether
As revealed in its latest SEC filing, the Michigan pension fund continues to hold its Bitcoin investment with 110,000 shares in the ARK 21Shares BTC ETF, worth roughly $7 million.
Not only did Michigans pension buy ether ETFs, but they bought more than they did of Bitcoin ETFs, $10 million vs $7 million, this despite BTC being up a ton and ether in the gutter, Bloombergs senior ETF analyst Eric Balchunas posited in a post on X.
Pretty big win for ether, which could use one.
Accelerating Institutional Adoption
Following the approval of spot Bitcoin and Ethereum ETFs, institutional investors have become more comfortable with dipping their toes into the fast-growing asset class.
In May, the State of Wisconsin Investment Board made a trailblazing move by picking up a $100 million investment in the spot Bitcoin exchange-traded fund issued by investment giant BlackRock.
Notably, Florida CFO Jimmy Patronis recently sent a letter requesting a report on considering Bitcoin and other digital assets as viable investments for state pension funds. This move signals that more and more states are now eyeing crypto as a viable investment for pension funds.
Text source: ZyCrypto
