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Michigan Pension Fund Bets Bigger on Bitcoin ETFs
The latest filing from the Michigan state pension fund has revealed a significant increase in their investment portfolio regarding Bitcoin ETFs. In a surprising move, the Michigan Retirement System tripled its ARK 21Shares Bitcoin ETF stake to an astonishing 300,000 shares by the end of Q2 2025.
According to the report, the system had previously held only 100,000 shares of the ARK 21Shares Bitcoin ETF at the close of March. The sudden surge in investment raises questions about the pension fund’s strategic approach to cryptocurrency exposure and whether this move could be a sign of the growing mainstream acceptance of digital assets.
The Michigan Retirement System has been quietly building its crypto exposure through Ethereum products, holding approximately $13.6 million worth of shares in Grayscale Ethereum Trust since September 2024.
Industry experts have speculated that pension funds’ rules-based approaches to portfolio management are responsible for their increased investment in Bitcoin ETFs. Ganesh Mahidhar from Further Ventures noted, “Pension funds operate based on rules around the circulating market cap of any asset, potential upside, and max drawdowns.” This could be a key factor in driving them towards cryptocurrency exposure.
The increase in stake is not without controversy, as recent data has shown significant outflows from Bitcoin ETFs. Over four consecutive days, ARK 21Shares recorded an astonishing $5.1 million in outflows, while other funds experienced even larger losses. In contrast, the Michigan Retirement System’s increased investment in ARK 21Shares stands out as a bold move amidst these uncertain market conditions.
Other state pension systems have also taken steps to expand their exposure to Bitcoin ETFs. The State of Wisconsin Investment Board holds an impressive 6 million shares of BlackRock’s iShares Bitcoin Trust, valued at approximately $387.3 million.
As the cryptocurrency space continues to evolve, it remains to be seen whether other institutional investors will follow suit in expanding their crypto holdings.
Source: coinrevolution.com
