The State of Michigan Retirement System has made a significant leap into cryptocurrency by investing $6.6 million in a Bitcoin exchange-traded fund (ETF).
According to a June 30 filing with the U.S. Securities and Exchange Commission, the pension fund holds 110,000 shares of the ARK 21Shares Bitcoin ETF, valued at approximately $6.6 million.
This move positions Michigan among the few states that have allocated a portion of their pension funds to cryptocurrency. The filing reveals that the shares are held under the ticker ARKB.
Although the $6.6 million investment represents a small fraction of the fund’s multi-billion-dollar portfolio, it signals a growing interest in Bitcoin among institutional investors.
Michigan follows the footsteps of Wisconsin and Jersey City in exploring crypto investments through ETFs.
In May, the State of Wisconsin Investment Board reported a $164 million investment in Bitcoin ETFs offered by Grayscale and BlackRock.
Similarly, Jersey City Mayor Steven Fulop recently hinted at a 2% allocation of the city’s pension fund to Bitcoin ETFs.
The ARK 21Shares Bitcoin ETF, which began trading on the Cboe BZX Exchange in January, had a net asset value of $64.68 as of July 25.
If Michigan’s holdings remain unchanged, the investment’s value could exceed $7 million. The pension fund manages approximately $3.2 billion in total assets.
This strategic move by Michigan comes amidst the increasing acceptance of cryptocurrency in the financial sector.
While the state’s Department of Treasury has not commented on the investment, it reflects a cautious yet progressive approach to integrating digital assets into traditional investment portfolios.