Michigan’s state pension fund has made a significant move by investing $6.6 million in Bitcoin ETFs. According to a filing with the United States Securities and Exchange Commission (SEC), the State of Michigan Retirement System now holds 110,000 shares in the ARK 21Shares Bitcoin ETF (ARKB).
This step places Michigan among the few states in the U.S. that have included Bitcoin ETFs in their investment portfolios. Michigan joins Wisconsin and New Jersey in this financial venture.
Bloomberg analyst Eric Balchunas highlighted that Michigan’s purchase of ARKB, valued at $7.4 million, marks the state as the third pension fund to report owning a Bitcoin ETF. Although this investment is a small percentage of Michigan’s total pension fund, it signifies a noteworthy beginning in cryptocurrency investments for the state.
State pension funds embrace Bitcoin
The trend of state pension funds investing in Bitcoin is gaining traction. Earlier this year, the State of Wisconsin Investment Board (SWIB) made headlines with a substantial $164 million investment in Bitcoin through BlackRock’s IBIT ETF and Grayscale’s Bitcoin Trust (GBTC).
This move demonstrated a growing confidence in Bitcoin among state pension funds. In a related development, Jersey City Mayor Steven Fulop disclosed that the city’s pension fund is also contemplating an investment in Bitcoin. Fulop, a long-time cryptocurrency supporter, expressed his belief in the potential of blockchain technology, comparing its importance to that of the internet. His advocacy for crypto investments reflects a broader trend of increasing interest in digital assets among public officials.
Political support for Cryptocurrency
The popularity of cryptocurrency has surged during the current election cycle. In Michigan’s 13th Congressional District, the Crypto Political Action Committee (PAC) endorsed incumbent Shri Thanedar with a $1 million media campaign. Thanedar, a Democratic representative and a staunch supporter of cryptocurrency, has received a “strongly supportive” rating from the Stand With Crypto initiative.
Since his election to Congress in 2023, Thanedar has backed several pro-crypto legislations. He voted in favor of the Financial Innovation and Technology for the 21st Century Act and supported a resolution to overturn an SEC rule restricting banks from handling cryptocurrencies. His pro-crypto stance aligns with the rising interest in digital currencies among voters.
The U.S. Congress passed two pro-crypto bills in May, breaking years of political gridlock. This unexpected support from leading Democrats might have been influenced by the growing popularity of cryptocurrency among the electorate. This week, the approval of spot Bitcoin ETFs and Ethereum’s spot ETFs further indicates the increasing acceptance of digital assets in the financial landscape.
Michigan’s investment in Bitcoin ETFs underscores a growing trend among state pension funds to diversify into cryptocurrency. With Wisconsin and New Jersey already on board and Jersey City considering similar moves, integrating Bitcoin ETFs into public investment portfolios appears to be gaining momentum. This shift reflects a broader acceptance of digital assets and highlights the increasing political and financial support for cryptocurrency in the United States.