Michigan Pension Fund Pioneers Ethereum ETF Purchases With $11 Million Stake 💼

The State of Michigan Retirement System (SMRS) became the first US state pension fund to invest in an Ethereum ETF, marking a pivotal moment in the pension industry. This move signifies a broader interest in digital assets beyond Bitcoin, boosting Ethereum’s price performance.

Michigan disclosed a substantial $11 million investment in Grayscale’s Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust, making it a top holder of ETH and ETHE according to filings with the SEC.

The decision to purchase more Ethereum ETFs than Bitcoin, despite the latter’s strong market position, underscores the growing appeal of Ethereum’s DeFi applications and smart contract capabilities.

Other states like Florida, Wisconsin, and Jersey are also considering cryptocurrency investments, highlighting a shift in mindset among public pension funds seeking diversified portfolios.

The move by Michigan could inspire further Ethereum adoption among state pension funds looking to capitalize on digital assets’ potential, despite the net outflow from Bitcoin ETFs on record.