Michigan pension fund invests $10M in Ethereum ETFs

The State of Michigan Retirement System (SMRS) has allocated over $10 million to Grayscale’s Ethereum (CRYPTO:ETH) ETFs, specifically Grayscale’s Ethereum Trust (ETHE) and Ethereum Mini Trust (ETH), according to recent reports.

This investment aligns with a growing trend of traditional retirement funds gradually integrating digital assets into their portfolios.

In addition to its recent purchase of Ethereum ETFs, Michigan’s pension fund had previously invested in Ark Invest’s and 21Shares’ ETF, ARKB, in July, initially acquiring approximately $6.59 million in shares, which have since increased in value to around $6.9 million.

This investment came amid similar moves by other institutions, with Jersey City, N.J., announcing plans to add Bitcoin (CRYPTO:BTC) ETFs to its pension fund portfolio.

Matthew Sigel, Vaneck’s head of digital asset research, highlighted SMRS’s $10 million stake in Grayscale’s Ether funds.

“State of Michigan Files 13F Discloses New ETH ETF Holdings; Becomes Top 5 Holder of ETH ETHE,” Sigel stated.

SMRS’s involvement follows other pension funds exploring digital asset exposure, including the State of Wisconsin Investment Board’s investment in BlackRock’s IBIT and the Houston firefighters’ and Ontario teachers’ pension funds’ ventures into crypto assets.

This trend emphasises a shift in traditional finance, with more conservative financial circles embracing digital assets such as Ethereum ETFs.

The growing interest among state and city pension funds and other retirement entities reflects a recognition of cryptocurrency’s potential role within mainstream finance.

As digital assets gain traction in retirement portfolios, institutional involvement continues to evolve, positioning cryptocurrencies as an increasingly viable component in diverse investment strategies.

At the time of reporting, the Ethereum (ETH) price was $2,406.72.