Michigan adds $6.6m in Bitcoin ETFs to pension fund

The Michigan State Retirement System invested $6.6 million in ARK 21Shares’ ARKB spot Bitcoin exchange-traded fund.

The ETF investment, disclosed in the Form 13-F filed with the SEC, represents only a small portion (0.004%) of the state’s massive $143.9 billion pension fund.

Michigan’s decision reflects a broader trend toward institutional adoption of Bitcoin (BTC), led by other states.

The Wisconsin State Investment Board recently reported investing $99 million in Bitcoin through BlackRock’s IBIT ETF.

Another state pension fund has added Bitcoin to its portfolio.

The Michigan State Retirement System reported in a filing with the SEC this morning that it held $6.6 million worth of the ARK Bitcoin ETF (110,000 shares) as of June 30.

This announcement follows Wisconsin’s announcement last quarter.

Filing:…

— MakroScope (@MacroScope17) July 26, 2024

Jersey City also announced its intention to add Bitcoin ETFs to its pension fund, with Mayor Steven Fulop also expressing strong support for crypto investments.

Corporate and government investment

The surge in institutional interest in Bitcoin ETFs is notable. Since the launch of the US Bitcoin Spot ETF in January, the market has gained significant momentum, with $75 million inflows recorded in the last two days alone.

Michigan’s decision to include Bitcoin in its pension fund portfolio represents a major move toward an institutional emphasis on Bitcoin. There has been talk of the United States adding a Strategic Bitcoin Reserve.

If the US were to adopt Bitcoin as a strategic reserve asset, it could leverage its position as the largest nation-state holder of Bitcoin and have the US Treasury Department hold a significant amount of Bitcoin as part of its reserve portfolio, as it does with gold or foreign currencies.

Mainstream adoption of cryptocurrencies appears to be gaining momentum as government pension funds and traditional financial institutions diversify their portfolios with digital assets.