The State of Michigan Retirement System has taken a major step into adopting cryptocurrency by investing in a spot Bitcoin exchange-traded fund (ETF) offered by ARK 21Shares.
According to a recent filing with the United States Securities and Exchange Commission (SEC), Michigan’s state pension fund has acquired 110,000 shares of the ARK 21Shares Bitcoin ETF (ARKB), valued at approximately $6.6 million.
Although this investment represents only a small portion of Michigan’s substantial $143.9 billion in assets under management, it is a major step in incorporating digital assets into its investment strategy. Michigan is now the third state to allocate a part of its pension fund to cryptocurrency through ETFs since Bitcoin ETFs were approved in January.
The trend of state pension funds investing in Bitcoin ETFs started earlier this year. In May, the State of Wisconsin Investment Board reported a $164 million investment in Bitcoin ETFs offered by Grayscale and BlackRock. Recently, Jersey City Mayor Steven Fulop announced plans to allocate 2% of the city’s pension fund to Bitcoin ETFs.
Despite the Michigan government’s official website advising caution regarding the volatility and regulatory uncertainties of cryptocurrency investments, the state’s pension fund has proceeded with its investment in the ARK 21Shares Bitcoin ETF.
The ARK 21Shares Bitcoin ETF has been trading on the Cboe BZX Exchange since January and had a net asset value of $64.68 as of July 25. If the value has been maintained, Michigan’s investment could now be worth over $7 million.