Bitcoin Adoption Acc...

Bitcoin Adoption Accelerates as Michigan State Pension Fund Snatches up $6.6 Million in BTC

By José Oramas July 30, 2024 In Bitcoin, ETFs, SEC

Piggy bank with painting of Michigan flag. The problem is in the economy. Economic crisis. Saving money concept. — Source:AdobeStock

The approval of Bitcoin ETFs has made BTC more attractive to traditional investors, including pension funds.
Michigan is now the third pension fund to invest in BTC, followed by Wisconsin and New Jersey.
Bitcoin ETFs have reached a cumulative value of over US$17B

According to its latest 13-F filing with the Securities and Exchange Commission (SEC), the State of Michigan Retirement Fund reported holding approximately US$7M (AU$10.6M) in the ARK 21Shares Bitcoin ETF (ARKB). This move highlights the growing confidence in Bitcoin among institutional investors and financial entities through these investment vehicles.

21Shares is one of the largest exchange-traded product (ETP) issuers, offering an exchange-traded fund (ETF) for Bitcoin and another one for Ethereum, called Core Ethereum ETF (CETH).

And Another One

Michigan’s pension fund holds around US$143.9M (AU$219.64M) in pension fund assets for state employees. Moreover, institutional investment in Bitcoin ETFs from entities considered conservative regarding crypto assets, could drive significant adoption for Bitcoin and place it as a legitimate investment asset.

According to Eric Balchunas, Senior Bloomberg ETF analyst, this is the third pension to report owning a BTC ETF. As Crypto News Australia reported, the State of Wisconsin Investment Board (SWIB) allocated over US$140M to Bitcoin ETFs, such as Grayscale Bitcoin Trust and BlackRock’s IBIT.

Just checked and yes looks like Michigan's Pension bought up some $ARKB (altho we have it as $7.4m) which is small %-wise for them but its a start, they now third pension to report owning a btc ETF https://t.co/C7sn81WcOT pic.twitter.com/pfA938qFxR
— Eric Balchunas (@EricBalchunas) July 26, 2024

Similarly, the Employees’ Retirement System of Jersey City (ERSJC) allocated around 2% of its assets under management, around US$2.6M (AU$3.97), to the Ark21 Shares Bitcoin ETF.

So far, these three pension funds are known to have officially acquired Bitcoin ETFs, which the SEC approved in January 2024. Market observers and analysts believe that more institutions, organisations, and financial entities will grow more confident in these financial vehicles and potentially drive the demand even higher than it is today.

Data from SoSo Value shows spot Bitcoin ETFs have reached over US$17.5B (AU$26.74B) in cumulative net inflows. Meanwhile, total net assets remain at US$61.7B (AU$94.27B). Notably, Bitcoin ETFs reached a streak of 12 consecutive days of net inflows ranging from US$50M (AU$76.3M) to over US$100M (AU$152.5M).