The State of Michigan Retirement System has invested over $11 million worth of crypto assets in Grayscale’s Ethereum exchange-traded fund, according to a 13F filing to the United States Securities and Exchange Commission (SEC).
The details of the 13F filing disclosed that the Michigan pension agency holds a considerable investment portfolio in Ethereum ETFs, consisting of 460,000 shares of the Grayscale Ethereum Trust (ETHE), valued at approximately $10 million, and an additional 460,000 shares of the Grayscale Ethereum Mini Trust ETF (ETH), currently valued at $1.1 million.
This substantial holding brings the agency’s total investment in ETH ETFs to over $11 million.
Michigan Pension Fund Makes History
The Michigan pension fund’s investment in ETH ETFs has achieved remarkable milestones, setting new precedents in the industry.
Notably, it has become the pioneering public pension fund to disclose an ETH ETF holding, marking a significant breakthrough in institutional investment. Furthermore, according to Matthew Sigel, Head of Digital Assets at VanEck, the fund’s substantial stake in Grayscale’s spot Ethereum ETFs has catapulted it to the top-five holder position.
🚨 First State Pension Fund Buys #ETH ETF 🚨
State of Michigan Files 13F Discloses New ETH ETF Holdings; Becomes Top 5 Holder of $ETH & $ETHE pic.twitter.com/3eYrCh3ldG
— matthew sigel, recovering CFA (@matthew_sigel) November 4, 2024
The Michigan State Pension Fund’s recent ETH ETF investment follows its initial crypto allocation in July, wherein it spent about $6.6 million to buy 110,000 shares of the ARK 21Shares Bitcoin ETF (ARKB).
Institutional Capital Flows into Crypto Markets
Recently, traditional institutions have shown an increased appetite for cryptocurrency investments.
Jersey City announced plans in July to allocate a portion of its pension funds to Bitcoin ETFs, while the Chief Financial Officer of Florida, Jimmy Patronis, also advocated for the American state to add Bitcoin (BTC) to its investment portfolio.
A recent report highlights significant growth in traditional hedge funds holding crypto assets. The percentage of funds invested in cryptocurrencies rose from 29% in 2023 and 37% in 2022 to 47% in 2024.
Furthermore, the report revealed that existing cryptocurrency investors are committed to their allocations, with 67% maintaining current levels and 33% planning to increase their investments by year-end 2024.
Additionally, the adoption of digital asset derivatives rose, jumping from 38% in 2023 to 58% in 2024.
