Ethereum ETFs see $10m patronage from Michigan State

Ethereum ETFs recorded their first State Pension Fund purchase, with Michigan purchasing shares in two funds offered by Grayscale.

The State of Michigan was among the top five holders of Grayscale’s spot Ethereum (ETH) exchange-traded funds, according to a Securities and Exchange Commission report. Michigan’s Form 13F disclosed that the state owns a total of $10 million in Grayscale ETH and ETHE.

Bloomberg ETF expert Eric Balchunas noted that Michigan has more stakes in ETH ETFs than spot Bitcoin (BTC) ETF holdings.

Michigan’s pension fund not only bought Ether ETFs, but also more Bitcoin ETFs; $7 million instead of $10 million. This is despite BTC rising a ton and Ether being in the trough. That’s a pretty big win for Ethereum available.

Eric Balchunas, senior Bloomberg ETF analyst

The crypto community had mixed reactions to this first sovereign fund investment in ETH products. While some praised the move as a positive development for Ethereum, others criticized Michigan government investors for allocating less to Bitcoin ETFs.

Rug Radio creator Daito Yoshi likened the move to a strategic business decision. Yoshi suggested in X that other government-backed investors could also deploy capital into ETH products.

I wonder where other institutions will choose to allocate their BTC gains to catch up once we reach $100k and realize they missed the BTC boat.

Daito Yoshi, creator of Rug Radio

Bitcoin and Ethereum ETFs have been trading for months, and BTC funds are the clear leaders in the crypto investing space. More than $70 billion is held in Bitcoin ETFs, while less than $10 billion is held in Ethereum funds.

But institutional interest in crypto ETFs has increased overall. Traditional financial firms have invested nearly $13 billion in Bitcoin ETF shares alone this year.