State of Michigan pension fund now owns more Ethereum than Bitcoin

The State of Michigan Retirement System (SMRS) has significantly increased its Ethereum (ETH) holdings, increasing its investment to $10 million and surpassing its Bitcoin (BTC) allocation.

The move makes Michigan the first U.S. 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 cryptocurrency earlier this year as part of a broader diversification strategy.

In July, he got into BTC with a $6.6 million purchase of the ARK 21Shares Bitcoin Spot ETF, more than six months after the Securities and Exchange Commission (SEC) approved the product investment

According to a recent SEC filing, SMRS now owns 460,000 shares of Grayscale Ethereum Trust (ETHE), valued at about $10.07 million. He also owns other Ethereum Mini Trust shares worth $1.12 million. Together, these holdings add up to nearly $11 million in Ethereum-based ETFs alone.

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

More US states accept crypto investments

Michigan’s focus on Ethereum reflects a growing interest among US states in the broader potential of digital assets. In Florida, CFO Jimmy Patronis recently advocated for the inclusion of Bitcoin in the state’s retirement system.

In a letter to the Florida State Board of Administration, Patronis cited the state’s strong economic performance and history of innovation as reasons to explore Bitcoin. He proposed a “Digital Currency Investment Pilot Program” to diversify the Florida Growth Fund into these asset classes.

Wisconsin has also allocated a small portion of its pension funds to crypto assets. In August, the State of Wisconsin 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, with Wyoming and Nebraska enacting laws to attract cryptocurrency mining and establish a regulatory framework for crypto banks.

Pennsylvania’s legislature also recently advanced a “Bitcoin Bill of Rights” to clarify the state’s regulations on digital assets. If Gov. Josh Shapiro signs it, Pennsylvania will join other states in establishing their digital asset regulations amid continued uncertainty perpetuated by policies like the SEC’s “regulation by enforcement” approach.

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