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Michigan Pension Fund Bets Bigger on Bitcoin ETFs
The State of Michigan’s pension fund has taken a bold move by tripling its stake in the ARK 21Shares Bitcoin ETF, demonstrating a notable shift towards diversification and growth potential. According to recent filings with the Securities and Exchange Commission (SEC), this significant increase represents a substantial commitment to the cryptocurrency market.
As reported, the State of Michigan Retirement System has now taken up a total of 300,000 shares in ARK 21Shares Bitcoin ETF, effectively quadrupling its Q1 2025 holdings. This move comes as part of the fund’s effort to optimize returns by increasing exposure to digital assets.
Notably, this investment decision highlights the growing influence and acceptance of cryptocurrency-based products in institutional portfolios. As one industry expert noted, “Pension funds operate based on rules around the circulating market cap of any asset, potential upside, and max drawdowns.” The expert further emphasized that these institutions carefully monitor Sharpe ratios to ensure optimal risk-adjusted performance.
The ARK 21Shares Bitcoin ETF has recently faced some pressure, experiencing outflows totaling $1.4 billion over four consecutive days. Notably, however, the fund recorded only one instance of outflows, resulting in a loss of approximately $5.1 million on Friday last week.
Other state pension systems have followed suit, taking similar steps to expand their exposure to cryptocurrency-based products. The State of Wisconsin Investment Board holds an impressive 6 million shares of BlackRock’s iShares Bitcoin Trust, valuing at roughly $387.3 million.
As the crypto markets continue to evolve and mature, institutional investors are becoming increasingly comfortable with adding digital assets to their portfolios.
Source: coinrevolution.com
