The State of Michigan Retirement System has allocated $6.6 million to invest in ARK 21Shares’ ARKB spot Bitcoin exchange-traded fund.
The disclosed ETF investment, reported in a 13-F form submitted to the SEC, accounts for a minute portion – specifically 0.004% – of the state’s significant $143.9 billion pension fund.
Michigan’s decision exemplifies the wider pattern of institutional acceptance and implementation of Bitcoin, which aligns with other states. The State of Wisconsin Investment Board has recently disclosed a $99 million investment in Bitcoin via BlackRock’s IBIT ETF.
Jersey City has also announced intentions to add Bitcoin ETFs to its pension fund, with Mayor Steven Fulop expressing strong support for crypto investments.
Institutional and State Investment
The notable increase in institutional interest in Bitcoin exchange-traded funds (ETFs) is remarkable. Since the U.S. Bitcoin Spot ETF launch in January, the market has experienced significant growth, with a recent influx of $75 million recorded in the past two days.
The inclusion of Bitcoin in Michigan’s pension fund portfolio signifies a significant shift towards institutional prioritization of Bitcoin. There are discussions regarding the United States considering the establishment of a Strategic Bitcoin reserve.
Should the United States choose to incorporate Bitcoin into its strategic reserve, it could capitalize on its status as the largest holder of Bitcoin among nation-states. This would entail the U.S. Treasury acquiring substantial quantities of Bitcoin to include in its reserve portfolio, akin to its current gold and foreign currencies practice.
The increasing trend of state pension funds and established financial institutions incorporating digital assets into their investment portfolios suggests that the widespread acceptance of cryptocurrencies is gaining traction.