Michigan Pension Fund Favors Ethereum ETF Over BTC

A new 13-F filing shows that the State of Michigan Retirement System has a huge holding in the Ethereum ETF. The pension agency holds 460,000 shares

The State of Michigan Retirement System disclosed in a new 13-F filing that it has a large stake in the Ethereum ETF. The pension agency had 460,000 shares in the Grayscale Ethereum Trust (ETHE). The stake was valued at over $10 million by the end of the third quarter.

Michigan Pension Fund Prefers Ethereum ETF Over BTC

This new investment makes it the first pension fund to take such an action since the launch of Ethereum ETFs in the U.S.

Moreover, the Michigan Pension Fund has become one of the top five holders of the fund. In addition to the ETHE stake, the agency had 460,000 shares in the Grayscale Ethereum Mini Trust ETF (ETH). Notably, its exposure to ETH amounted to around $1.1 million.

As pointed out by Eric Balchunas, a Senior ETF analyst at Bloomberg, the Michigan Pension Funds’ Ether ETF holdings far outweighed its Bitcoin ETF holdings. Hence, he described it as a big win, which Ethereum needed.

“Not only did Michigan’s pension buy ether ETFs, but they bought more than they did of bitcoin ETFs, $10 million vs $7 million, this despite BTC being up a ton and ether in the gutter,” Balchunas noted.

Reactions To Michigan Pension Fund Buildup

Interestingly, one user noted that the Michigan Pension Fund’s decision to acquire more Ethereum ETFs than its Bitcoin counterpart did not alter the level of dominance between the two underlying cryptocurrencies. He highlighted that Bitcoin ETF products had a higher share of dominance, which was evident in the volume of inflows that it consistently recorded.

Several U.S. states and pension funds have shown an appetite for crypto-based investments over the past months. About six months ago, news emerged about the State of Wisconsin Investment Board’s exposure to a spot Bitcoin ETF. Notably, the board held up to $100 million of the product, which was approved by the U.S. SEC in January.

According to Florida’s Chief Financial Officer Jimmy Patronis, the state also had around $800 million in “crypto-related” investments. It even planned to increase the stash, although this move largely depended on the outcome of the upcoming presidential election, which was only hours away.

Moreover, the State of Michigan Retirement System also disclosed owning around $7 million of a spot Bitcoin ETF.

Growth Catalysts To Watch For Ethereum

Judging by the public’s reaction, it was clear that Ethereum had not yet reached its full potential, despite the launch of an ETF. For instance, ETH price was currently trading at $2,427.46, which was far from the $4,000 price that was anticipated for the coin. According to analysts, a few catalysts could propel ETH towards a price rally.

The U.S. Federal Reserve is preparing to inject an estimated $800 billion in liquidity into the market. This move was expected to provide a significant boost to the second-largest cryptocurrency by market cap. Furthermore, the outcome of the elections could play a role in advancing Ethereum’s market position.

Apart from this, the digital currency is undergoing intensive upgrades that could drive its adoption. Overall, its Layer-2 ecosystem could also contribute to making it more attractive for further ETF adoptions.