Michigan State Retirement Fund Now Holds More Ethereum Than Bitcoin

The Michigan State Retirement System (SMRS) has significantly increased its ethereum (eth) holdings, bringing its investment to $10 million and surpassing its bitcoin (btc) allocation.

This move makes Michigan the first US state pension fund to invest in an ethereum-based exchange-traded fund (ETF).

Michigan Pension Fund crypto Wallet

SMRS, which has more than $13 billion in assets, began exploring cryptocurrencies earlier this year as part of a broader diversification strategy.

In July, it entered btc with a $6.6 million purchase of the ARK 21Shares Spot bitcoin ETF, more than six months after the Securities and Exchange Commission (SEC) approved the investment product.

According to a recent SEC presentationSMRS now owns 460,000 shares of Grayscale ethereum Trust (ETHE), valued at approximately $10.07 million. He also owns another $1.12 million in ethereum Mini Trust shares. Combined, these holdings total nearly $11 million exclusively in ethereum-based ETFs.

This increased allocation means SMRS now has more money invested in ethereum than bitcoin, given that its position in ARK 21Shares is valued at approximately $7 million.

More US states adopt cryptocurrency investments

Michigan's focus on ethereum reflects a growing interest among US states in the broader potential of digital assets. In Florida, Chief Financial Officer Jimmy Patronis recently advocated for the inclusion of bitcoin in the state's retirement system.

In a letter to the Florida State Administrative Board, Patronis aforementioned The state's strong economic performance and history of innovation as reasons to explore bitcoin. Proposed a “Digital Currency Investment Pilot Program” to diversify the Florida Growth Fund into such asset classes.

Wisconsin has also allocated a small portion of its pension funds to crypto assets. In August, the Wisconsin State Investment Board (SWIB) announced that it had increased its holdings in BlackRock's iShares bitcoin Trust (IBIT) by 447,651 shares.

Meanwhile, the Arizona state Senate has advanced legislation to add digital assets to its retirement system, and Wyoming and Nebraska have enacted laws to attract cryptocurrency mining and establish a regulatory framework for crypto banks.

The Pennsylvania legislature also recently introduced a “bitcoin Rights” bill to clarify state regulations on digital assets. If signed by Gov. Josh Shapiro, Pennsylvania will join other states in establishing their digital asset regulations amid uncertainty perpetuated by policies like the SEC's “regulation by enforcement” approach.

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