Michigan State Retirement Fund Increases Ethereum Holdings Over Bitcoin
The Michigan State Retirement System has increased its Ethereum holdings to $10 million, surpassing its Bitcoin investments, marking a significant shift in state pension fund allocations towards digital assets.
The State of Michigan Retirement System (SMRS) has made a significant move by increasing its Ethereum (ETH) investments to $10 million, surpassing its Bitcoin (BTC) allocation. This development marks Michigan as the first U.S. state pension fund to invest in an Ethereum-based exchange-traded fund (ETF).
Overview of the Michigan Pension Fund’s Crypto Investments
With over $13 billion in assets, SMRS began its exploration into cryptocurrency earlier this year as part of a diversification strategy. In July, the fund invested $6.6 million in ARK 21Shares’ spot Bitcoin ETF, following the SEC's approval of the investment product.
Recent SEC filings reveal that SMRS now holds 460,000 shares in the Grayscale Ethereum Trust (ETHE), valued at approximately $10.07 million. Additionally, the fund possesses $1.12 million worth of Ethereum Mini Trust shares, bringing its total Ethereum-based ETF holdings to nearly $11 million. This shift indicates that SMRS now has a greater investment in Ethereum compared to its Bitcoin position, which is valued at around $7 million.
Growing Interest in Crypto Investments Among U.S. States
Michigan's increased focus on Ethereum reflects a broader trend among U.S. states exploring digital assets. For instance, Florida's Chief Financial Officer, Jimmy Patronis, has recently advocated for Bitcoin's inclusion in the state’s retirement system. He proposed a "Digital Currency Investment Pilot Program" to diversify the Florida Growth Fund into such asset classes.
Similarly, Wisconsin has allocated a portion of its pension funds to crypto assets, increasing its holdings in BlackRock’s iShares Bitcoin Trust (IBIT) by 447,651 shares. Arizona's state Senate is also advancing legislation to incorporate digital assets into its retirement system, while Wyoming and Nebraska have enacted laws to foster cryptocurrency mining and establish a regulatory framework for crypto banks.
Pennsylvania's legislative assembly has moved forward with a "Bitcoin Rights" bill aimed at clarifying the state's regulations on digital assets. If signed by Governor Josh Shapiro, Pennsylvania will join other states in defining its digital asset regulations amid ongoing uncertainties.
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