Michigan State Pension Fund Invests $6.6 Million in Bitcoin ETF, Reports Reuters

By Suzanne McGee

The State of Michigan Retirement System, which manages approximately $143.9 million in pension fund assets for state employees, has made a $6.6 million investment in the ARK 21Shares ETF, as disclosed in a regulatory filing on Friday.

This investment is notable as it represents the second confirmed instance of a pension fund investing in the spot bitcoin exchange-traded funds (ETFs) that were introduced in January. This trend indicates a gradual emergence of interest from traditional institutional investors in cryptocurrency assets.

In May, the investment board of Wisconsin, overseeing $156 billion for the Wisconsin Retirement System, reported holdings in BlackRock’s iShares Bitcoin Trust and a stake in the Grayscale Bitcoin Trust. The values of those holdings were reported at $99 million and $63 million, respectively, at the close of March. However, this pension fund has yet to provide an update for its second-quarter portfolio.

Typically, quarterly disclosures, known as 13-F filings, are submitted to the Securities and Exchange Commission approximately 45 days after the completion of each quarter and might not reflect the fund’s current positions.

Although retail investors have comprised a significant portion of the $32 billion that has flowed into the nine newly-launched bitcoin ETFs over the past six months, analysts are keenly observing any potential increases in institutional demand, including from the Michigan pension fund.

"Institutions allocating to these funds are likely to have a longer time horizon," remarked Todd Sohn, an ETF analyst at Strategas. Other analysts suggest that a greater proportion of long-term investors may help stabilize the typically volatile nature of bitcoin.

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

The State of Michigan Retirement System has not responded to inquiries for further comments.