On Monday, the state of Michigan disclosed 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 significant step for institutional investment in digital assets, as the Michigan Retirement System manages approximately $144 million in pension fund assets for state employees.
Michigan Becomes First State Pension Fund to Invest in ethereum ETFs
The Michigan Retirement System revealed an investment of more than $6.9 million in the ARK/21Shares bitcoin ETF, which is equivalent to about 110,000 shares of the fund.
Additionally, Michigan has become the first state pension fund to invest in an ETF containing ethereum, further diversifying its cryptocurrency portfolio. Matthew Sigel, head of digital asset research at VanEck, noted that Michigan has now entered the ranks of the top five holders of ethereum and Grayscale. Trust in ethereum (SHE SAID).
Bloomberg ETF Expert Eric Balchunas x.com/EricBalchunas/status/1853472024833695805″ target=”_blank” rel=”noopener nofollow”>highlighted the significant investment Michigan has made in ethereum ETFs, worth $10 million, which exceeds its investment in bitcoin ETFs.
Instead, the Wisconsin state investment board, which manages $156 billion for its retirement system, has revealed holdings in bitcoin ETFs, including BlackRock's iShares bitcoin Trust and Grayscale bitcoin Trust.
These disclosures are part of quarterly 13F filings, which provide a snapshot of institutional investment strategies approximately 45 days after the end of each quarter.
bitcoin spot ETFs hit six-month high
Demand for bitcoin Spot ETFs Has arose to a six-month high, indicating strong interest in bitcoin as an investment vehicle. However, ethereum ETFs have yet to replicate this success in the US market.
Despite strong performance through October, bitcoin ETFs faced challenges in early November, with a bitcoin-news/bitcoin-etfs-hot-7-day-streak-ends-record-55-million-in-net-outflows/” target=”_blank” rel=”noopener nofollow”>reported net outflow of $54.9 million on November 1.
Fidelity's FBTC accounted for nearly half of this outflow, totaling about $25.64 million, while ARK & 21Shares' ARKB saw a similar drop of $24.13 million.
Grayscale's GBTC, traditionally associated with capital outflows, only recorded outflows of $5.51 million, indicating relative stabilization compared to previous trends.
Interestingly, BlackRock's iShares bitcoin Trust (IBIT) did not record any influx or capital outflow on November 1, marking a pause after 14 consecutive days of capital inflow. Prior to this, IBIT had seen a significant inflow of $872 million on October 30.
At the time of writing, the largest cryptocurrency on the market, bitcoin, is trading at $67,970, a drop of almost 2% in 24 hours. ethereum, on the other hand, is down 3% over the same period, trading at $2,407.
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