Why This Pension Fund’s $6.6 Million Investment in Bitcoin ETFs Matters
Contributor: John Doe
- Michigan’s state pension fund has invested $6.6 million in Bitcoin ETFs
- This is another chapter in the growing mainstream acceptance of BTC and other cryptocurrencies
In a recent regulatory announcement, the Michigan State Pension System made a landmark decision to invest in cryptocurrencies. The pension fund, which manages approximately $143.9 billion in assets and is for state employees, has invested $6.6 million in the ARK 21Shares Bitcoin ETF.
Since their launch in January, this investment is only the second confirmed case of a pension fund investing in spot Bitcoin ETFs. This move is a sign of the growing acceptance of crypto assets by traditional institutional investors and could open the door for wider adoption.
Wisconsin’s previous moves set a precedent
Towards the end of March, Wisconsin’s pension system announced its investment in BlackRock’s $99 million iShares Bitcoin Trust and $63 million Grayscale Bitcoin Trust (GBTC). And that’s with a portfolio of assets worth $156 billion.
Retail investors have raised the majority of the $32 billion that has flowed into nine newly emerged Bitcoin ETFs over the past 6 months. However, according to VettaFi, some analysts are paying attention to changes in demand from institutions such as Michigan’s state pension fund.
Likewise, Mayor Steven Fulop tweeted that Jersey City’s pension fund would invest 2% in Bitcoin ETFs but did not provide any specific timeline for this allocation..
Source: X
These examples show that interest ingrowing among financial officials at various levels.
