Michigan Pension Fund Invests in Bitcoin ETF, Signaling Growing Institutional Interest in Crypto

This marks the second known instance of a pension fund investing in these spot bitcoin ETFs, which were introduced in January.

The State of Michigan Retirement System, managing approximately $143.9 million in pension fund assets, has made a significant investment of $6.6 million in the ARK 21Shares Bitcoin ETF (ARKB.Z), according to a regulatory filing released on Friday.

This move highlights the growing interest among traditional institutional investors in bitcoin exchange-traded funds (ETFs), which are slowly gaining traction in the financial sector.

This marks the second known instance of a pension fund investing in these spot bitcoin ETFs, which were introduced in January.

The growing interest from such investors signals a positive trend for crypto assets, suggesting an increased acceptance and potential for growth in the institutional space.

In a similar development, the State of Wisconsin’s Investment Board, which oversees $156 billion in assets for the Wisconsin Retirement System, disclosed its investments in BlackRock’s iShares Bitcoin Trust (IBIT.O) and a stake in the Grayscale Bitcoin Trust (GBTC.P).

These holdings were valued at $99 million and $63 million, respectively, as of the end of March. The board has yet to file its portfolio update for the second quarter.

These investments were reported through 13-F filings to the Securities and Exchange Commission, required approximately 45 days after each quarter’s end.

However, these filings may not necessarily reflect the current holdings.

While retail investors have largely driven the $32 billion influx into the nine newly launched bitcoin ETFs over the past six months, analysts are closely monitoring for signs of increasing institutional demand.

Todd Sohn, an ETF analyst at Strategas, noted, “Institutions allocating to these funds are likely to have a longer time horizon.”

This perspective aligns with other analysts who believe that a higher presence of long-term investors could mitigate bitcoin’s volatility.

In related news, the mayor of Jersey City, New Jersey, announced on the social media platform X plans to allocate funds to bitcoin ETFs, although no specific timeline was provided.

The State of Michigan Retirement System declined to comment on this development.